CEO optimism hits 10-year high for a stronger global economy in 2022
PwC’s 25th Annual Global CEO Survey polled 4,446 CEOs in 89 countries and territories between October and November 2021.
expect global economic growth to improve during the year ahead
high levels of confidence about their own prospects for revenue growth over the next 12 months
concerned about cyber risks
have made a net-zero commitment
CEOs remain quite optimistic about their near-term economic prospects. Despite rising interest in ESG, strategy is still primarily driven by business metrics. Most CEOs have goals related to customer satisfaction, employee engagement, and automation or digitisation included in their long-term strategy. These non-financial outcomes are intertwined with day-to-day business performance.
PwC CEO Survey 25 yearsView Transcript
While there is general optimism among CEOs for economic growth in 2022, the perspective varies widely across individual countries and territories.
More than half of CEOs also report high levels of confidence about their own prospects for revenue growth over the next 12 months. They were led by CEOs of private equity firms (67% of whom are highly confident about their company’s growth) and technology firms (64%).
CEOs in Turkey are more optimistic about both global economic growth and the growth of their companies compared to global results. 80% of them presume that global economic growth will increase in the next year. This rate is the highest level since 2015, when Turkey was included.
Firms with serious decarbonisation pledges often embed targets into strategy. Just 22% of our respondents have made a net-zero commitment. Nearly two-thirds of those with revenues of US$25bn or more have made a net-zero commitment, compared to 10% of companies with revenues of less than US$100mn.
Among CEOs of companies that have not made a commitment to achieve carbon neutrality or a net-zero commitment, 57% indicate that they don’t think their companies produce a meaningful amount of GHG emissions.
Boards should be talking with their CEOs, and CEOs with their top teams, about their collective “inbox” problem. Enthusiasm about ESG won’t make near-term financial demands go away. Indeed, in a world of scarce time, attention and corporate resources, framing trade-offs realistically may be the only way to bring investors along and create a realistic strategic agenda, as opposed to a wish list.
CEOs’ near-term worries are primarily about potential revenue disruptions.
Similar to last year, CEOs are most concerned about cyber risks (49%) and the global health situation (48%) as the pandemic lingers. Coming in a close third on the threat list for all CEOs is macroeconomic volatility, including fluctuations in GDP, unemployment and inflation.
The concerns of CEOs in Turkey are distinct compared with the global results. Among the threats that CEOs in Turkey concern about, macroeconomic volatility, which includes unemployment and inflation as well, takes the first place with 69%, whilst climate change takes the second place with 48%.
Marketing and Communications, Senior Manager, PwC Turkey
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