Unlike 2016, the CEOs’ confidence in their companies’ own one-year revenue growth is on the rise in nearly every major country across the world. Some 71% of the CEOs in India, 57% of those in Brazil, and 52% of those in Romania (up from 50% in 2016) believe that their businesses will grow in the next year according to a survey carried out by consultancy company PwC.
“Romanian CEOs prove to be among the most optimistic business leaders worldwide, ranking as the 3rd most optimistic CEOs worldwide in terms of perspectives for growth of their companies, according to the results of the PwC Global CEO Survey 2017. This is due to the fact that, Romania has witnessed high economic growth rhythms, well above the EU average, in recent years, while the perspectives for the next few years are also positive, taking into consideration the continuation of the tax cuts and the sustained growth of internal consumption,” said Ionut Simion, Country Managing Partner, PwC Romania.
However, Romania needs to preserve the macroeconomic and fiscal stability if it wants to maintain and improve its level of competitiveness, Simion added. The country should also accelerate the pace of structural reforms, and the investments in infrastructure.
Confidence also rose by 11 points in China to 35%, 6 points in the US to 39%, and 3 points in Germany to 31%. In Switzerland, confidence levels have more than doubled to 34%, according to the PwC survey. On the other hand, the CEOs’ confidence levels dropped in Spain, Mexico, and Japan.
The global average stands at 38%, up from 35% in 2016, but slightly lower than the 39% reported for 2015 and 2014.
When asked what drives growth, organic expansion tops the agenda for over three-quarters of CEOs (79%) in the coming year, while 41% are planning new merger and acquisition activity in 2017, and nearly a quarter (23%) of all CEOs intend to strengthen their innovation capabilities to capitalize on new opportunities, according to PwC.
However, the findings released on Tuesday at the World Economic Forum in Davos show that, while business leaders are more positive in their outlook, their levels of concern about economic uncertainty (82%), over-regulation (80%), and availability of key skills (77%) remain very high. Worries about protectionism are also growing (59% of CEOs).
The highest levels of confidence in 12-month growth for companies was recorded in 2007, when 52% of CEOs said they were very confident about their companies’ growth in the next 12 months. The lowest was in 2009, during the economic crisis, when only 21% of the CEOs said the same.
The survey was carried out between September and December 2016, on 1,379 CEOs from 79 countries. The interviews were made online, by post, face to face, and by phone. Some 57% of the respondents worked in privately owned companies, and 43% in listed companies.