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And for respondents' home economies, 34 percent expect moderately or substantially worse economic conditions in the next six months, up from 20 percent in the December 2017 survey. And while 32 percent of these respondents think economic conditions will be moderately or substantially better in the next six months, this is down from 49 percent in the Decem- ber 2017 survey. Despite these figures, however, McKinsey says par- ticipants across regions are more positive regarding their future than at present, with the exception of those based in Europe and North America, particu- larly in the United States. "In North America, respondents report much more buoyant views than their peers on current conditions: 53 percent say their economies are in better shape now than six months ago, compared with 30 percent of all other respondents," notes the survey. "But they are much more negative about their home countries' pros- pects. Just 28 percent in the region believe future con- ditions will continue to improve, and a slightly larger share predict that domestic conditions will worsen." And while 44 percent of respondents believe the global economic growth rate will increase in the next six months (39 percent expect a contraction), this is down from 65 percent in March 2018. For their home economies, 47 percent feel the same, down from 61 percent six months ago. is is also a marked decline in expectations for their home countries' trade prospects, with 46 percent expecting trade levels to decrease in the next year, twice the amount that antic- ipated trade to decrease in December 2017. According to McKinsey, trade issues are still the top perceived threats to economic growth. "As in our previous survey, trade-policy changes and changing levels of trade are cited first and third on the list of potential global risks, and trade-policy changes continue to top the list of threats to domestic growth," states the report. "At the same time, a few other risks have come to the fore. e shares of respondents cit- ing exchange-rate volatility as a global and a domestic risk have increased since June, with emerging-market respondents expressing greater concern." Looking ahead, respondents in emerging econo- mies are also less optimistic than their counterparts in developed economies regarding workforce size, demand for company products and/or services, and company profits in the next six months. What does all of this mean for real estate investors? Trends in economic sentiment are among the many considerations property investors must weigh care- fully in their investment decision making. Jennifer Molloy is senior editor of Institutional Real Estate Asia Pacific. Trade issues are still the top perceived threats to economic growth. 29 REALASSETS ADVISER | D E C E M B E R 2 0 1 8