Global Economic Growth Outlook 'Most Cautious In Over a Decade': PwC Survey The PwC's annual global CEO survey launched during the world economic forum annual meeting in Davos, asserted that 78% of CEOs in India and 73% of global CEOs believe that global economic growth will decline over the next 12 months
By Teena Jose
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According to PwC's 26th annual global CEO survey, which polled 4,410 CEOs in 105 countries and territories in October and November 2022, revealed that nearly three quarters (73%) of CEOs believe global economic growth will decline over the next 12 months. According to the survey this is the most cautious outlook in over a decade.
The survey report further stated that nearly six in ten corporate heads in India (57%) are optimistic about the country's growth prospects in 2023 in the face of global slowdown as well as inflationary and geopolitical concerns.
On the contrary, in addition to a challenging environment, nearly 40% of CEOs think their organisations will not be economically viable in a decade if they continue on their current path. The PwC's annual global CEO survey launched during the world economic forum annual meeting in Davos, asserted that 78% of CEOs in India and 73% of global CEOs believe that global economic growth will decline over the next 12 months. As per the PwC said that it is the most pessimistic that CEOs have been in over 12 years, reflecting the uncertain global economic conditions.
In response to the current economic climate, as per the report, CEOs are looking to cut costs and spur revenue growth. The survey showed that 52% of CEOs report reducing operating costs, while 51% report raising prices and 48% diversifying product and service offerings. However, more than half (60%) say they do not plan to reduce the size of their workforce in the next 12 months. A vast majority (80%) indicate they do not plan to reduce staff remuneration in order to retain talent and mitigate workforce attrition rates.
"A volatile economy, decades-high inflation, and geopolitical conflict have contributed to a level of CEO pessimism not seen in over a decade. CEOs globally are consequently re-evaluating their operating models and cutting costs, yet despite these pressures, they are continuing to put their people front and centre as they look to retain talent in the wake of the 'Great Resignation.' The world continues to change at a relentless pace, and the risks facing organisations, people – and the planet – will only continue to rise. If organisations are not only to thrive – but survive the next few years – they must carefully balance the dual imperative of mitigating short-term risks and operational demands with long-term outcomes - as businesses that don't transform, won't be viable," said Bob Moritz, global chairman, PwC.
PwC surveyed 4,410 CEOs in October and November of 2022. The global and regional figures in the report are weighted proportionally to country or regional nominal GDP to ensure that CEOs' views are representative across all major regions, claimed the report.
