Our latest survey offers insight into how executives perceive the growing market influence of emerging economies, a topic that has received much attention as the world economy emerges from recession. Strong majorities of respondents expect Brazil, China, and India to become more influential over the next five years, while more expect the influence of the United States, the Eurozone, and Japan to decrease than to increase or even remain the same.¹ Nearly three-quarters of those who expect any profit or revenue from emerging markets expect the share to increase. And 61 percent say governments should make it easier for companies to invest or do business in their countries—a share that skews higher among respondents in most developing economies.

In the shorter term, respondents are a little more positive on the state of their nations’ economies than they were three months ago, with just over half now saying conditions have improved and 63 percent saying their countries are now in recovery. They are a little less positive about the near future, though: two-thirds expect inflation to rise in 2011, and concern about sovereign-debt defaults and exchange rate volatility has risen sharply in the past three months, no doubt in response to the ongoing turmoil in the Eurozone. Perhaps also in response to that turmoil, the share of executives expecting an upturn in 2011 has fallen to a quarter, from 35 percent in September.