CEOs are the most pessimistic they’ve been in decades – PwC

Price Waterhouse Coopers, the assurance, advisory and tax services, has described the results from their Global CEO Survey as possibly the most pessimistic outlook that they have seen in over a decade.

According to the results of the survey, around 73% of CEOs around the world believe that global economic growth will decline over the next 12 months.

This is the bleak view of nearly three quarters of the CEOs interviewed.

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The firm said that the CEOs surveyed in sub-Saharan Africa did not differ much from those in their global counterparts, but the pessimistic view amidst South Africa respondents pertained specifically to the ramifications around load shedding on their businesses.

Report findings

Meanwhile, on a more global front, some of the finding in the report include:

• Nearly 40% of CEOs don’t believe their organisations will be economically viable in 10 years if they do not transform.

• Inflation (40%), macroeconomic volatility (31%) and geopolitical conflict (25%) rank as the top global threats, as cyber and health risks fall from a year ago.

• CEOs are cutting costs, yet 60% do not plan to reduce headcount and 80% don’t plan to reduce compensation in the fight to retain talent following the ‘Great Resignation’.

• Changing customer demands, regulation, labour/skills shortages and tech disruption are seen as the biggest challenges to long-term industry profitability.

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• CEOs see climate risk impacting their cost profiles and supply chains over the next 12 months; 58% are developing a strategy for reducing emissions and mitigating climate risks.

A difficult economy

With a dwindling global economy, CEOs to rethink aspects of their business models. The report stated that many would not be looking to evolve the business and its strategy to meet future demands, but to rather primarily consumed with driving current operating performance.

Bob Moritz, PwC Global Chairman, put the record level of pessimism down to a volatile economy, decades-high inflation, and geopolitical conflict.

“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’.

“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,” he said.

*Compiled by Devina Haripersad