 |
|
|
FOR IMMEDIATE RELEASE
October 31, 2006
|
CONTACTS:
Rob Nichols (202) 457-8765
Erin Hickman (917) 392-1775
|
FORUM CEOS PREDICT U.S. AND GLOBAL ECONOMIC EXPANSION
Terrorism and protectionism are seen as the two biggest threats
to economic growth both domestically and globally
Forum members also share views on U.S. real GDP growth,
the federal funds rate, and the Dow Jones Industrial Average
WASHINGTON, DC – The U.S. and global economies will continue to expand in 2007, according to a survey of members of the Financial Services Forum, a non-partisan organization consisting of the chief executive officers of twenty of the world's largest and most diversified financial institutions.
The survey polled members of the Financial Services Forum, an association chaired by Charles Prince, Chairman and CEO of Citigroup, and led by former Secretary of Commerce Donald L. Evans. The Forum CEO Survey is released twice annually.
"As CEOs of major financial services firms, our members have a unique hands-on insight into the U.S. and global economy," said Forum CEO Donald L. Evans. "The results of the Forum CEO survey will provide valuable information to policymakers, market analysts and researchers on global economic trends."
The survey also indicated that the CEOs perceive China not only offers the most attractive investment opportunity, but further, believe it will make the largest contribution to global economic growth over the next decade. This growth is most impacted by the free flow of capital, ranked number one by the CEOs, followed by other economic factors including trade liberalization and technological innovation. Rather than a threat to the U.S. economy and culture, the majority of CEOs view China as an opportunity as a new market and a source of labor and resources.
A majority of CEO's expect the U.S. economy to enjoy strong to very strong growth over the next year. Forum members responded that terrorism and protectionism are the two biggest threats to economic growth both domestically and globally. The CEO's further indicated global concerns also included political instability and energy prices while ranking the regulatory environment in the U.S. as the next leading factor negatively affecting expansion of the U.S. economy.
Litigation reform, trade liberalization, entitlement funding, and the protection of low tax rates were ranked by the Forum's members as the most important policy goals in terms of their value to continued U.S. economic growth and competitiveness.
Forum members also shared their views on U.S. real GDP growth, the federal funds rate, and the Dow Jones Industrial Average.
The full survey is attached. The next Forum CEO Survey will be released in April 2007.
###
Click here a downloadable version of the Bi-Annual CEO Survey |
|
ABOUT THE FORUM
The Financial Services Forum is a non-partisan financial and economic policy organization comprised of the chief executive officers of 20 of the largest and most diversified financial institutions doing business in the United States. The Forum works to promote policies that enhance savings and investment in the United States and that ensure an open, competitive and sound global financial services marketplace.
The Forum's three primary missions are to:
1. Educate the public about the importance of robust capital markets;
2. Encourage a competitive global marketplace; and
3. Shape the national and international regulatory dialogue.
As a group, the Forum's member institutions employ more than 1.5 million people and hold combined assets of more than $12 trillion - an amount greater than the annual output of the U.S. economy. Forum institutions are currently active in more than 165 nations around the world.
Charles Prince, chief executive officer of Citigroup, is the chairman of the Forum. G. Kennedy Thompson, chief executive officer of Wachovia, is the Vice Chairman. Prince succeeds Treasury Secretary Henry M. Paulson, Jr., who served as the Forum's chairman before being nominated as secretary of the Treasury. Former United States Commerce Secretary Donald L. Evans is the Forum's chief executive officer and Robert S. Nichols, former assistant secretary for public affairs at the U.S. Treasury Department, serves as the Forum's president and chief operating officer.
The Forum was founded in 2000 and has been called "perhaps the country's most powerful trade association," by Time.
FORUM MEMBERS:
AIG, Martin J. Sullivan
Allstate Insurance Company, Edward M. Liddy
American Express Company, Kenneth I. Chenault
Bank of New York, Thomas Renyi
Citigroup Inc., Charles Prince
Deutsche Bank AG, Dr. Josef Ackermann
Edward Jones, James D. (Jim) Weddle
Fidelity Investments, Robert L. Reynolds
GE Commercial Finance, Michael A. Neal
Goldman Sachs, Lloyd C. Blankfein
HSBC, Stephen K. Green
JP Morgan Chase & Co., James Dimon
Lehman Brothers, Richard S. Fuld, Jr.
Merrill Lynch, Stan O'Neal
MetLife, C. Robert (Rob) Henrikson
Morgan Stanley, John J. Mack
Prudential Financial, Arthur F. Ryan
State Street Corporation, Ronald E. Logue
UBS AG, Peter A. Wuffli
Wachovia Corporation, G. Kennedy Thompson
Click here a downloadable version of the Bi-Annual CEO Survey
|
|
How would you characterize your expectations regarding growth in the global economy over the next year?
How would you characterize your expecations regarding growth in the global economy over the next 2-3 years?
On a scale between "1" and "5" (with "1" being "not serious" and "5" being "the most serious"), please rate the following as threats to global economic growth.
On a scale between "1" and "5" (with "1" being "not important" and "5" being "the most important"), please rate the following regions and economic factors in terms of their expected contribution to global economic growth over the next decade.
On a scale between "1" and "5" (with "1" being "not attractive" and "5" being "the most attractive"), please rate the following countries in terms of the investment opportunity they represent.
At what rate do you expect U.S. real GDP to grow?
How would you characterize your expectations regarding growth in the U.S. economy over the next year?
How would you characterize your expectations regarding growth in the U.S. economy over the next 2-3 years?
What is your expectation regarding the federal funds at year-end 2006? Year-end 2007?
Where will the Dow Jones Industrial Average be at Year-end 2006? At year-end 2007?
On a scale between "1" and "5" (with "1" being "not serious" and "5" being "the most serious"), please rate the following as threats to the continued expansion of the U.S. economy.
Please rate the following policy goals in terms of their value to continued U.S. economic growth and enhanced competitiveness, with 5 being the "most valuable" and 1 being "least valuable."
Over the next few years, will China be more of an opportunity as a new market and a source of labor and resources, OR more of a threat to American companies, American culture and influence around the world? Please rate on a scale of 1 to 5 with "1" being a threat and "5" being an opportunity.
What degree of importance do you attach to corporate social and evironmental responsibility?
|
|
|
