Global CEOs confident about economic rebound

A record number of chief executives believe that global economic growth will improve in 2021, reflecting a significant rebound in optimism compared to the previous year, according to a recent survey by PwC.

Done among 5,050 CEOs in 100 counties and territories over January and February, the report said 76 per cent of them were optimistic about recovery of the global economy from the ravages done by the ongoing coronavirus outbreak.

Only 22 per cent of CEOs expected improved growth in 2020, said the survey released on March 11.

"One year later, we still find ourselves in its grip, but vaccines developed at breakneck pace have enabled us to envision recovery. The details of that recovery are not yet clear. However, it's certain that we cannot simply go back to the way things were before," the PwC said in its 24th Annual Global CEO Survey.

The report said most CEOs that responded to the survey were bullish about a global economic comeback.

"It will be enabled by a continuation of companies' pandemic-induced digital acceleration, which promises productivity and other business benefits, but also increases the threat of cyberattacks and spread of misinformation," it added.

Mamun Rashid, managing partner of PwC Bangladesh, said such surveys bear testament to Bangladeshi CEOs and business leaders moving together with global leadership.

"The leaders we meet and work with exhibit a sense of optimism and see opportunities ahead. While they recognize that there are uncertainties that need to be navigated, they are eager to capitalize on business expansion and digital disruption," he said.

The PwC said it analysed CEO confidence levels dating back to 2008 to determine both the direction and strength of global GDP.

Based on this year's responses, it estimated that global growth could rise as much as 5 per cent -- just slightly lower than recent IMF projections that the global economy will grow 5.5 per cent in 2021.

"The CEOs' optimism also reflects momentum in vaccine development and rollout in various parts of the world. We are by no means out of the woods but CEOs see a path forward -- for the global economy, and for their own organisations," the PwC said.

36 per cent of CEOs were very confident about their revenue growth prospects for the next year while 47 per cent are very confident looking ahead three years.

Despite their confidence, CEOs are acutely aware of threats in the external environment, starting with the obvious: pandemics and other health crises are the number one threat on this year's list with 52 per cent of CEOs stating they are 'extremely concerned.'

However, danger is lurking online.

"Cyber security has fast become a major source of anxiety," the survey said, adding that it has become the second highest concern among CEOs. Some 47 per cent of the CEOs cited cyber security as a concern.

Alsorising rapidly on the list of CEOs' concerns is the spread of misinformation as 28 per cent were 'extremely concerned', up from 16 per cent the previous year.

At its core, misinformation reflects today's historically low levels of trust.

"For business leaders who need to build back this trust, being transparent about the efficacy of products and sharing data can help," it said.

The survey also said that the COVID-19 pandemic made company leaders realise that digitisation is important in the upcoming world.

Nearly half of CEOs plan to increase their rate of digital investment significantly, according to a PwC survey.

The fresh study pointed out that although CEOs' confidence in their own company's revenue prospects has rebounded, they are still anxious about the pandemic's trajectory and subsequent tax, regulatory and policy uncertainty.