THE EXECUTIVES' CLUB OF CHICAGO

As a follow up, we thought you might be interested in some related research by our distinguished panel.

Below is a selection of McKinsey Global Institute's research that appeared in the McKinsey Quarterly.

The coming demographic deficit
As people in Japan, the United States, and the countries of Western Europe grow older, bank accounts in these nations, where most of the world's wealth is created and held, are likely to grow more slowly. Because people save less after they retire, and younger generations in their prime earning years are proving less frugal than their predecessors, savings rates are set to fall dramatically—with dire consequences for living standards in wealthy and poor nations alike.

If no action is taken, the coming slowdown in global savings and the decline in projected financial wealth could depress investment and slow economic growth. A concerted effort to boost savings rates, shrink government deficits, and increase returns on financial assets can help avert this outcome.
Click here to view PDF

Mapping the global capital markets, 2007
The world's financial assets now total more than $140 trillion and are on pace to reach $214 trillion by the decade's end.  Moreover, the value of the world's financial assets now exceeds global GDP by a factor of three—an unprecedented degree of financial depth, which largely bodes well for the world's economies. While the United States remains the world's largest financial intermediary, the eurozone has emerged as a powerhouse in the financial landscape, and Japan remains strikingly isolated. The McKinsey Global Institute outlines the way capital markets around the globe are becoming stronger, more liquid, and increasingly integrated across geographies and asset classes.
Click here to view PDF

What businesses need to know about the US current-account deficit
The US current-account deficit could continue to grow for at least five years. A major depreciation of the dollar could eliminate the deficit during that period, but in fact, such an adjustment would probably be gradual. At any pace, the dollar’s depreciation would trigger significant changes in global trade and savings.
Governments, business leaders, and investors should prepare for the potential effects on operations and investment priorities.
Click here to view PDF
 
The full reports on which these articles were based can be accessed free of charge at www.mckinsey.com/mgi.