Pricewaterhouse survey shows CEOs confident economy will bounce back from covid19

IT IS NO surprise that covid19 was one the number one concern of the 5,000 businesses that participated in the PricewaterhouseCoopers (PwC) 24th annual survey, launched virtually on Thursday. What was truly surprising, according to PwC chairman Bob Moritz, was the optimism which businesses had in the next three years.

Seventy-six per cent of businesses believed that in the next 12 months, the economy would improve. That is a massive jump from 22 per cent recorded in last year’s survey. A little under 40 per cent had the same optimism for the next three years.

The optimism comes in different forms, Moritz said.

“The first is optimism in the potential of the economy. It is at a record high – up 20 per cent from the previous year. The second thing is opportunity in their own organisations, particularly in their ability to grow revenue within the next 12 months. Likewise they see the same opportunity over the next three years.”

The report said CEOs in hospitality, leisure, transport and logistics were the least optimistic with the hospitality industries seeking to rebound to 2019 levels in the next three years. But tech industries, still riding high from the digital surge coming out of the pandemic had a better outlook on the next 12 months.

But overall businesses see a way forward. The PwC report said 36 per cent of CEOs said they were confident about their revenue growth prospects and almost half – 47 per cent – were very confident that the next three years would see growth.

PwC itself had its own good news. The report compiled feedback on the confidence level, dating back to 2008, to determine the direction and the strength of the global gross domestic product and found, based on this year’s responses, the global economy could grow by as much as five per cent.

Despite their confidence CEOs are fully aware of the threats still looming from covid19 and other factors. About 52 per cent said they were extremely concerned with the threat of pandemics and health crises. The last time PwC asked that question six years ago, only 9 nine per cent had that concern.

What is also notable is the increase in concern over cyber risks. That jumped from 33 per cent in 2020 to 47 per cent, no doubt climbing along with the increase in the use of technology.

“What is interesting is that rise is more consistent around the world when previously it was primarily out of Western Europe and the United States,” Moritz said.

Concern over climate change has risen slightly, indicating that while it is a concern it is still not a prominent one for CEOs.

Moritz said while concern over climate change did increase more than 60 per cent, CEOs did not include plans on the impact of climate change in their business modules.

“The challenges are many,” Moritz said. “There is a difference between those who are moving with speed and agility to react to the uncertainties that are out there, and yes, there are risks but also opportunities that the CEO’s are seeing.”