Chief executive officers around the world are expecting a bleak future, with nearly three-quarters (73 per cent) of them believing that global economic growth will decline over the next 12 months.
The figure marks the most pessimistic result for PwC’s 26th Annual Global CEO Survey since the organisation began the polls 12 years ago. It also represents a significant departure from the optimistic outlooks of 2021 and 2022, when over 76 per cent and 77 per cent, respectively, thought economic growth would improve.
The latest survey polled 4,410 CEOs in 105 countries and territories in October and November 2022.
Approximately 40 per cent of CEOs think their organisations will not be economically viable in a decade if they continue on their current path.
This number is almost consistent across various sectors, such as telecommunications (46%), manufacturing (43%), healthcare (42%) and technology (41%).
CEOs’ confidence in their own company’s growth prospects has also seen its biggest drop (-26 per cent) since the 2008-2009 financial crisis when a 58 per cent decline was recorded.
Business confidence around economic growth with G7 economies being more pessimistic about their domestic growth prospects than they are about global growth.
G7 economies, such as France, Germany, and the United Kingdom, are currently facing an ongoing energy crisis.
Meanwhile, the impact of the economic downturn is the top concern for CEOs this year, with inflation and macroeconomic volatility leading risks weighing on CEOs in the short term— the next 12 months and over the next five years.
“A volatile economy, decades-high inflation, and geopolitical conflict have contributed to a level of CEO pessimism not seen in over a decade. CEOs globally are consequently re-evaluating their operating models and cutting costs, yet despite these pressures, they are continuing to put their people front and centre as they look to retain talent in the wake of the ‘Great Resignation.” said Bob Moritz, global chairman for PwC.
“The world continues to change at a relentless pace, and the risks facing organisations, people – and the planet – will only continue to rise. If organisations are not only to thrive – but survive the next few years – they must carefully balance the dual imperative of mitigating short-term risks and operational demands with long-term outcomes – as businesses that don’t transform, won’t be viable,” Moritz added.
