76% of Global CEOs Positive About Economy This Year... Highest Since 2012

[Asia Economy Reporter Ji-hwan Park] One year after the declaration of the COVID-19 pandemic, chief executive officers (CEOs) have expressed record-high optimism about the global economic recovery.

On the 12th, Samil Accounting Corporation announced the results of the 24th Annual Global CEO Survey conducted by PwC over two months from January, targeting 5,050 people in over 100 countries. According to the survey, 76% of participating CEOs expected the economic growth rate to improve this year.

The percentage of CEOs who anticipated a global economic revival had been steadily declining since 2018, dropping to only 22% last year. However, this year showed the highest positive response rate since the question was first asked in 2012. By region, optimism was particularly prominent in North America (86%) and Western Europe (76%).

Regarding these results, Bob Moritz, Global Chairman of PwC, said, "Despite the human tragedy and economic difficulties caused by COVID-19 last year, it is very encouraging that CEOs running companies are optimistic about economic growth," adding, "The rapid development and distribution of vaccines leading to herd immunity has increased the number of people expecting global economic growth."

He added, "In overcoming unexpected situations, CEOs likely reconsidered their roles," and "Expectations for the role of companies have risen. How they build trust with stakeholders and deliver sustainable results amid rapidly changing external environments will determine their resilience in crises after COVID-19."

CEOs’ Confidence in Their Own Revenue Growth Rebounded, but Differences Exist by Industry

The positive sentiment among CEOs about the economic environment extended to their own business outlooks. The proportion of CEOs who responded that they were ‘very confident’ about their company’s revenue growth over the next year increased from 27% last year to 36%.

Positive growth outlooks varied slightly by industry due to changes in consumer behavior caused by COVID-19. In the technology and telecommunications sectors, 45% and 43% of CEOs respectively expressed confidence in growth, while transportation and logistics recorded 29%, and food service, accommodation, and leisure sectors showed a relatively low 27%.

The United States Remains the Top Core Country in Corporate Growth Strategies

In a survey selecting core strategic countries for corporate growth, the United States ranked first again with a 35% preference rate. China followed in second place with 28%, widening the gap with the U.S. from 1 percentage point last year to 7 percentage points.

By country, U.S. CEOs appeared significantly influenced by the emergence of new political powers and existing trade tensions. Preference for the Chinese market among U.S. CEOs dropped sharply, while preference for Canada and Mexico increased significantly. Meanwhile, Chinese CEOs favored major export countries such as the United States, Germany, and Japan. Germany ranked third with a 17% preference rate, maintaining its position from last year. The United Kingdom received 11%, India 8%, and Japan moved up to sixth place, surpassing Australia, which was sixth last year.

Climate Change Ranks 9th Among Top 20 Threats to Growth

The 26th United Nations Climate Change Conference of the Parties (COP26) is scheduled to be held this November in Glasgow, UK. Nevertheless, the proportion of CEOs concerned that climate change would threaten business activities rose slightly from 24% last year to 30%, ranking 9th. The percentage of CEOs who answered that they ‘do not worry at all’ or ‘do not worry much’ about climate change was 27%. This is presumed to be because climate change is less immediately perceptible compared to other factors such as pandemics like COVID-19, overregulation, and cyber threats.

This content was produced with the assistance of AI translation services.