Security News > 2020 > December > CFOs optimistic, expect the economy to improve in 2021

CFOs optimistic, expect the economy to improve in 2021
2020-12-22 04:00

Europe was flat at 5% and 37%, respectively, and China improved markedly to 47% and 60%. On a positive note, 76% of CFOs expect the U.S. economy to improve in 2021 - reassuring but not surprising given how it fared in 2020.

Only 19% expect the economy to grow faster over the next five years than pre-pandemic - when the economy was slowing.

Finishing out a difficult 2020, just over 40% of CFOs expect to achieve 95% or more of their originally budgeted 2020 revenue, with the average expecting 88%. Consistent with their near-term COVID-19 worries and hopes for a broadly available vaccine later next year, nearly two-thirds do not expect pre-crisis operating levels until at least the second half of 2021, and 26% do not expect to get there until 1Q22 or later.

"Nearly two-thirds of CFOs say they do not expect to return to pre-crisis operating levels until the second half of 2021 or later, and 26% do not expect to get there until 1Q22 or later," said Steve Gallucci, national managing partner, U.S. chief financial officer program, Deloitte.

CFOs mostly expect the federal funds rates to stay low and expect bond yields below 2%. They expect the renminbi to gain on the US dollar and for its use as a trading currency to rise substantially; expectations for the euro and digital currencies rose as well.


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