About 73% CEOs Anticipate Declining Economic Growth In 2023, Survey Says

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About 73% CEOs Anticipate Declining Economic Growth In 2023, Survey Says

Global consultancy giant PwC's 26th annual survey revealed a shift in outlook for the current year among CEOs from 2021 and 2022. It also showed that 40 per cent CEOs believe their companies will not viable if they continue on their current path.

A global survey of chief executive officers (CEOs) on Monday revealed that 75 per cent foresee a drop in the global economic growth rate over the next 12 months, the most negative prediction in more than a decade.

PricewaterhouseCoopers (PwC) conducted the 26th annual survey between October and November 2022, where 4,410 CEOs from 105 nations and territories—including 68 CEOs from India responded.

Most Pessimistic Outlook In Over Decade

PwC said this is a substantial change from the positive outlook of 2021 and 2022 when more than two-thirds believed economic growth would increase. The annual poll was released on January 16, the first day of the Annual Meeting of the World Economic Forum.

Since PwC started posing this question 12 years ago, CEOs have never been more pessimistic about the future of the world economy, reported the Business Standard.

The poll also revealed that around 40 per cent of CEOs think their organisations would only be profitable in ten years if they reform. About half or more of the CEOs who participated in the study said changing consumer tastes, legislative change, a lack of skilled workers, and technological disruption are most likely to influence the profitability of their business during the next ten years.

In their effort to retain talent in the wake of the 'great resignation,' corporations are decreasing expenses, but they do not yet have any plans to do so by reducing personnel or pay.

Big Three Global Concerns

The top three global concerns are inflation, macroeconomic instability, and geopolitical conflict, but cyber and health risks are down from a year ago.

Global CEOs anticipate some climate change impact over the next 12 months, particularly in their cost profiles (where almost 50 per cent expect a moderate, significant, or very substantial impact) and supply chains (42 per cent).

Compared to leaders in the US, Brazil, India, and China, leaders in France, Germany, and the UK appeared to be less confident about local growth than global growth.

Also Read: About 93% Of Indian CEOs Plan To Decrease Operating Expenses, No Reduction In Jobs: Survey

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