Global execs upbeat on economic recovery

Marking a significant improvement in their attitudes, a higher percentage of global executives feel the economy is recovering and 71 per cent think the stock market will continue to improve in the second half of 2009.

According to results of an Executive Quiz released by global talent management service provider the Korn/Ferry Institute, as much as 40 per cent of respondents said the word "recovering" best described the state of the global economy.

The percentage of executives saying this has increased 67.5 per cent over the past six months compared with mere 13 per cent in March.

Moreover, an overwhelming majority of executives (71 per cent) felt that performance of stocks would continue to improve through the second half of 2009 as well, the report stated.

However, majority of executives said the labour market would lag the financial markets in regaining strength. Global executives rank labour market data as the most accurate economic indicator, the report added.

Despite the optimism about recovery, almost 60 per cent of executives describe overall economic state negatively.

About 39 per cent categorise it as a 'severe recession' , while four per cent call it a 'depression.'

However, these numbers are significantly lower than March data, when 'severe recession' accounted for two-thirds of responses and 'depression' tallied six per cent.

The survey also said the prospects for a labour market recovery seem to be trailing the financial markets.