PwC’s 26th Annual Global CEO Survey, which polled 4,410 CEOs in 105 countries and territories took place in October and November 2022. Elaborating on their findings, the survey states that nearly three quarters (73%) of CEOs around the world believe global economic growth will decline over the next 12 months. This is a significant departure from the optimistic outlooks of 2021 and 2022, when more than three-quarters of CEOs polled thought economic growth would improve.
In addition to a challenging environment, nearly 40% of CEOs think their organizations will not be economically viable in a decade if they continue their current path. The pattern is consistent across a range of sectors, including telecommunications, manufacturing, healthcare, and technology. CEOs are also seeing multiple direct challenges to profitability within their own industries over the next 10 years. More than half believe changing customer demand/preferences will impact profitability, followed by changes in regulation, labor/skills shortages, and technology disruptions.
Bob Moritz, Global Chairman, PwC, said “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. Despite these pressures, they are continuing to put their people front and center as they look to retain talent in the wake of the ‘Great Resignation.”
CEOs in the Asia Pacific (APAC) region remain optimistic about their prospects for growth, with 47% of CEOs expecting to see a significant increase in revenue in the next 12 months. Additionally, the survey highlights that CEOs in the region are prioritizing digital transformation and sustainability, with 93% of CEOs planning to increase investment in digital transformation, and 85% planning to increase investment in ESG (Environmental, Social, and Governance) initiatives. These findings demonstrate the resilience and adaptability of businesses in the Asia Pacific region, and the commitment to driving sustainable growth in the years ahead.
The Asia Pacific region has experienced significant challenges over the past year, particularly in countries like Sri Lanka. However, according to the findings of PwC’s 26th Annual Global CEO Survey for the region, businesses have shown remarkable resilience and determination to pursue sustainable growth in the future. Prioritizing digital transformation and sustainability has emerged as crucial strategies to strengthen businesses and contribute to a better future for society and the planet. Leaders should imperative to remain proactive in shaping the future of our businesses and industries and collaborate to build a more inclusive and sustainable world.
Channa Manoharan, Chief Operating Officer of PwC Sri Lanka and Maldives speaking about being optimistic towards the future stated “Successfully navigating the dual imperative requires a delicate balance of short-term risk management and long-term transformation. As COO, it’s our responsibility to lead the charge in driving profitability while also fostering innovation and collaboration for sustained success. By prioritizing value creation, empowering our teams, and leveraging our stakeholders, we can not only survive but thrive in a rapidly changing business landscape.”
The challenges of the past year have highlighted the importance of agility and adaptability in business overall. PwC’s survey provides valuable insights and guidance for CEOs as they navigate the rapidly changing business landscape and work to build a more sustainable and inclusive future.