PwC Germany
Dusseldorf (ots)
26th Global CEO Survey by PwC: More than 80 percent of German CEOs expect global economic growth to decline / Inflation, macroeconomic volatility and geopolitical conflicts are the greatest threats to business / Technology is an investment area in crisis
Great pessimism among CEOs worldwide: 73 percent of company leaders expect global economic growth to decline. A year ago it was only 15 percent. Only 18 percent of CEOs believe that global economic growth will increase this year (previous year: 77 percent). In Germany, CEOs are even more pessimistic: 82 percent of them expect global economic growth to decline in the coming year (previous year: 19 percent). Only about every seventh German CEO (14 percent, previous year: 76 percent) believes in an increase in global economic growth.
These are the results of the 26th Global CEO Survey by the auditing and consulting firm PwC, in which around 4,500 CEOs from 71 countries took part.
A look at your own company: optimism is falling rapidly
The 25th Global CEO Survey already showed that the optimism of CEOs in Germany with regard to their own company is crumbling. The trend continues: This year only 35 percent are very confident that their organization will grow in the next twelve months (worldwide: 42 percent). Last year it was 59 percent. 20 percent of CEOs in Germany are not confident that their company will grow (previous year: 9 percent).
The CEOs in Germany give a better forecast for the growth of their organization in the next three years. 59 percent are very confident that their company will grow in the next three years (worldwide: 53 percent). Last year, however, 67 percent made this statement.
“Climate change, war in Europe, energy crisis, inflation: we are all facing structural and systemic problems. But a state of crisis and optimism must not be mutually exclusive. It takes confidence and courage to successfully implement the necessary transformation projects, such as digitization and decarbonization.” , says Petra Justenhoven, spokeswoman for the management of PwC Germany. “To solve the challenges of today and in the future, CEOs should rely on the interaction of people and pioneering technology. This is how they create sustainable values and ensure the trust of their stakeholders – today and in the future.”
Germany remains highly relevant as a business location: Other countries also see Germany as the third most important growth market this year. 18 percent of the CEOs of foreign companies stated that Germany is important for their company growth in the next twelve months (previous year: 18 percent). Only the USA (40 percent, previous year: 41 percent) and China (23 percent, previous year: 27 percent) are seen as even more important by CEOs worldwide.
Inflation, macroeconomic volatility and geopolitical conflicts are concerns
Inflation reached record highs in Germany in 2022. This worries CEOs: 39 percent of German CEOs stated that inflation is a very serious threat to their company (global: 40 percent). In addition, CEOs see their organizations vulnerable to geopolitical conflicts (31 percent, global: 25 percent) and macroeconomic volatility (31 percent, global: 31 percent). Cyber risks and climate change, which were number one and two of the biggest concerns last year, are now close behind. Nevertheless, German CEOs are still aware of the dangers of cyber risks such as hacking, surveillance and disinformation (29 percent, global: 20 percent) and climate change (20 percent, global: 14 percent). Health risks – including pandemics such as Covid-19 – see eight percent of German CEOs as a danger (worldwide: 14 percent). Four percent (worldwide: six percent) indicated social inequality.
Economic challenges cause changes in operations
The economic challenges have consequences: 92 percent of CEOs in Germany say that they will reduce operating costs due to the current market situation or have already done so (worldwide: 85 percent). 91 percent said they will raise prices or have already done so (80 percent globally). 88 percent are looking for alternative suppliers (worldwide: 75 percent). In addition, 82 percent stated that they are currently re-evaluating ongoing projects and larger initiatives (worldwide: 74 percent). And 67 percent say they are slowing investment (global: 54 percent). More than every fourth CEO in Germany (27 percent) does not believe that their own company will still be economically viable in ten years if the current course is maintained. Globally, 39 percent say so.
Technology as an investment field in crisis
86 percent of CEOs in Germany stated that they would invest in the automation of processes and systems in the next twelve months (worldwide: 76 percent). 71 percent (worldwide: 69 percent) would like to expand the use of technology and invest in cloud solutions, AI (artificial intelligence) and other solutions. In addition, the introduction of alternative energies (61 percent, worldwide: 34 percent) and the qualification and further development of employees (57 percent, worldwide: 72 percent) are mentioned as areas of investment. Many German CEOs also see a need for investment in the area of sustainability: 51 percent of them stated that their company will invest in the decarbonization of their own business model (worldwide: 31 percent). In addition, 49 percent said they will free up funds to adapt supply chains (global: 41 percent).
The study and more information at: www.pwc.de/ceosurvey
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PwC Marketing & Communications
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Original content from: PwC Germany, transmitted by news aktuell
