Chief Executive Officers (CEOs) across the world are less confident about the global economy this year, as compared to 2015, according to PwC’s 19th Annual Global CEO Survey titled ‘Redefining business success in a changing world’.
The global financial landscape is still reeling from the global financial crisis seven years ago. Regulation, skills, national debt, geopolitical uncertainty and taxes were on the top of the list of concerns for CEOs across the world and these concerns still remain as we step into 2016. According to the report, 79% of CEOs still remain concerned about over-regulation, which tops the list of worries, 74% of CEOs are concerned about geo-political uncertainty.
The report states that, “Global conflicts are also connected to anxieties about social instability and readiness to respond to crises, named by 65% and 61% of CEOs, respectively. Cyber security is also a worry for 61% of CEOs, representing as it does threats to both national and commercial interests”.
The situation becomes even grimmer as the number of optimists who think that the global economy will improve in the next year has reduced from 37% in 2015 to 27% in 2016 and the number of CEOs who think that the economy will worsen has increased from 17% to 23%. On the other hand 35% of CEOs are confident of short term business growth.
The survey had asked CEOs to name three countries expect the one they are based out of, that are most important for overall growth prospects over the next yea. 9% CEOs named India in one of the three countries while 39% said USA and 34% said China.
Chitra Ramkrishna, Managing Director and CEO of National Stock Exchange of India Limited (NSE), said, “… for us in India, it looks like a situation where we will be one of the top few economies in terms of growth rates.”
The survey points out that technology and internet will play a major role in the global economy. Also, 66% CEOs see growing threats as compared to three years ago while 60% feel there are more growing opportunities as compared to three years ago.
India, however, according to the survey is continuing to do well with PM Narendra Modi’s pro-business government in power. India therefore is now among CEOs’ five most promising overseas markets.
