China continues to outpace the US economy, according to a CFO survey

According to the latest CNBC Global CFO Council survey in the fourth quarter of 2020, China’s economic outlook is improving faster than in other parts of the world, including the United States.

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For the second consecutive quarter, the world’s leading chief financial officer has a more positive outlook for the Chinese economy than the US economy.

In a fourth-quarter CNBC Global CFO Council survey, CFOs showed the average outlook for “moderately improving” China’s GDP and upgrading the world’s second-largest economy from “stable” in the third quarter. I did.

The council’s outlook for the US economy also improved from a “moderate decline” in the third quarter to a “stable” this quarter, but still lags behind China.

Around the world, GDP outlook has largely improved from the second and third quarter surveys. This quarter, along with the United States, the council upgraded Canada and the United Kingdom from “slightly declining” to “stable.” Japan, other Asian countries, and the euro area have maintained a “stable” rating since the previous quarter. Africa / Middle East, Latin America and Russia are still seen as “moderately declining.”

The CNBC Global CFO Council represents some of the world’s largest public and private companies and manages over $ 5 trillion in market value across different sectors.

China’s reputation for having the best economic conditions reflects reports that China’s economy is recovering as life looks like it was before a pandemic. China said in October that the economy grew 4.9% in the third quarter after growing 3.2% in the second quarter. However, third-quarter figures fell short of consensus estimates.

The US economy surged 33.1% in the third quarter as it recovered from the largest quarterly decline since the government began to set records. Fourth-quarter estimates are about 5% growth, but the revival of the Covid case in November has been a major impediment to the economy reaching that number, with major Wall Street banks forecasting U.S. GDP in recent weeks. Is being lowered.

For CFOs, pandemics remain the biggest external challenge business faces, with 28 (65.1%) of the 43 CFOs responding to this quarter’s survey being the biggest pandemics they face. Listed as an external risk. However, the majority of 2021 plans are based on vaccine hopes and the end of the global health crisis. Sixty-five percent of global CFOs say the promise of widespread availability of the Covid-19 vaccine by the second quarter of next year will have the greatest impact on the 2021 plan. On the other hand, about 21% say that the current surge in Covid cases is the largest. Impact on next year’s plans.

However, these results vary by region. As another sign that the United States and Europe continue to follow the path of Asia inside and outside the pandemic, 12 of the 13 Asia-Pacific CFOs who participated in the study said vaccine promises were the biggest in plans for next year. He said he was influential. Meanwhile, more than half of North American-based CFOs and just under half of European CFOs say the same thing.

Which of the following has had the greatest impact on your company’s plans for 2021?

When asked what is having the biggest impact on the 2021 plan, many CFOs say they are more optimistic about the Covid-19 vaccine than fearing a fourth-quarter surge in cases, but Asia. The CFO based in is the most confident.

Q4 2020 CNBC Global CFO Council Survey

China continues to outpace the US economy, according to a CFO survey

Source link China continues to outpace the US economy, according to a CFO survey

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