BY Fraser Tennant
Chief executives are showing record levels of pessimism in the global economy, with 53 percent predicting a decline in the rate of economic growth in 2020, according to a new report by PwC.
In ‘Navigating the rising tide of uncertainty’, PwC’s 23rd annual global chief executive survey, PwC notes that chief executive pessimism over global economic growth is particularly significant in North America, Western Europe and the Middle East, with 63 percent, 59 percent and 57 percent of chief executives from those regions predicting lower global growth in the year ahead.
“Given the lingering uncertainty over trade tensions, geopolitical issues and the lack of agreement on how to deal with climate change, the drop in confidence in economic growth is not surprising – even if the scale of the change in mood is,” said Bob Moritz, chairman of the PwC Network. “These challenges facing the global economy are not new – however the scale of them and the speed at which some of them are escalating is new, the key issue is how are we going to come together to tackle them?”
The report – which features the views of almost 1600 chief executives from 83 countries across the world – also reveals that chief executives are not too positive about their own companies’ prospects for the year ahead, with only 27 percent saying they are “very confident” in their own organisation’s growth over the next 12 months – the lowest level recorded since 2009 and down from 35 percent in 2029.
“On a brighter note, while there is record pessimism among business leaders, there are still real opportunities out there,” continues Mr Moritz. “With an agile strategy, a sharp focus on the changing expectations of stakeholders, and the experience many have built up over the last ten years in a challenging environment, business leaders can weather an economic downturn and continue to thrive.”
That said, the shortage of key skills remains a top threat to growth, with only 18 percent of chief executives stating that they have made “significant progress” in establishing an upskilling programme.
Mr Moritz concluded: “Business leaders, educators, government and civil society must work together to ensure that people around the world stay productively engaged in meaningful and rewarding work. Although people may have fears about the future, they want to learn and develop, and they are looking to leaders to provide a trusted path forward.”
