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March 2025

For the first time since March 2022, surveyed executives foresee geopolitical instability as the top risk to companies’ growth over the next 12 months. In the latest McKinsey Global Survey on economic conditions, weak demand—which was the most-cited risk in the previous three quarters—is now the second-most-cited disruption, followed closely by changes in the trade environment and trade relationships.

While private sector respondents remain more likely to expect improvement than they are to expect decreasing profits and demand, the shares expecting increasing profits and demand are the smallest in years. At the same time, responses suggest that both workforce sizes and prices are stabilizing. Just 41 percent of respondents say their companies have raised prices for their products or services in the past six months, the smallest share since we began asking that question, in September 2022.

McKinsey & Company

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