Despite geopolitical uncertainty, global middle market companies are aiming to grow, according to findings released June 6 in the EY Growth Barometer, a survey of 2,340 executives in 30 countries.
EY’s study reveals that “in spite of geopolitical tensions, including Brexit, increasing populism, the rise of automation and artificial intelligence (AI) and skilled talent shortages, 89 per cent of executives see today's uncertainty as grounds for growth opportunities.”
Over one-third of middle market companies – those with annual revenues of US$1m-US$3b – plan to grow 6 to 10 per cent this year, the survey found.
Geopolitical risks and uncertainties
"The global economic backdrop is much stronger than what the prevailing narrative has been telling us,” Annette Kimmitt, EY Global Growth Markets Leader. “Despite geopolitical risks and uncertainties, businesses being disrupted through new technologies and globalization rewriting the rules of supply and demand, middle market leaders are not only attuned to uncertainty, but are seizing it to grow, disrupt other markets and drive their growth agendas."
The EY survey found significant differences between the world's largest economy, the US where slightly more than a third of all companies plan modest growth increases of under 5 per cent, and the world's two tiger economies – China and India – where together 42 per cent of companies are targeting growth rates of six to ten per cent. One quarter of companies in tiger economies have current year growth plans of 11to 15 per cent.