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McKinsey: Only 25 percent of Executives Expect Economic Improvement in 2011

In its December 2010 Economic Conditions Snapshot, McKinsey reports that executives around the world anticipate emerging economies to strengthen their influence and rising inflation in 2011.

The majority of executives who responded to the survey say Brazil, China, and India will become more influential in the next five years, while the economic impact of the United States, Europe, and Japan on the global market will either remain the same or decrease.

In the short term, survey respondents were somewhat more positive on their countries' economic conditions compared to results from three months ago. More than half say conditions in their countries have improved, while 63 percent say their countries were in recovery.

Executives were less confident about 2011. Two-thirds expect inflation to rise, and those surveyed were concerned about potential sovereign debt defaults. Only 25 percent of surveyed executives expect economic improvement in 2011.

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