NASSAU, BAHAMAS — PwC’s 25th Annual Global CEO Survey, which polled 4,446 CEOs in 89 countries and territories between October and November 2021, found that more than three-quarters of CEOs, 77 percent, predict the global economy will improve, while only 15 percent expect worsening conditions.
CEO optimism for 2022 is a tick higher than the 76 percent optimism level from a year ago and fully 54 points higher than 2020, when more than half (53 percent) of CEOs predicted a declining economy.
More than half of CEOs also report high levels of confidence about their own prospects for revenue growth over the next 12 months. Among the CEOs expressing a more tepid outlook are those in the automotive sector (46 percent), grappling with semiconductor shortages, and in the hospitality and leisure sectors (44 percent), impacted by the lingering effects of the pandemic on travel.
While there is general optimism among CEOs for economic growth in 2022, the perspective varies widely across individual countries and territories. Among the largest territories, optimism is highest in India, where 94 percent of CEOs anticipate global growth in the coming year, up from 88 percent last year. Optimism is also trending up solidly among CEOs in Japan (plus 16 points to 83 percent, from 67 percent last year), and is modestly higher in the UK (up five points to 82 percent).
At the other end of the spectrum, CEO optimism about the global economy declined most notably in the US, down 18 points to 70 percent, and was also slightly down in Brazil (dropping seven points to 77 percent), China (down nine points to 62 percent) and Germany (down four points to 76 percent), perhaps as inflation and supply chain constraints became more of an issue.
US CEOs may be less sanguine on the global economy, but they are comparatively confident about their own companies’ growth prospects, with 40 percent extremely confident about achieving revenue growth in 2022. India CEOs are similarly confident in their companies’ outlook.
Prince Rahming, territory leader, PwC Bahamas said: “The optimistic sentiments of CEOs around the world participating in this year’s CEO survey are indicative of similar positive outlooks for The Bahamas. The country and CEOs alike are regaining confidence in the local economy and their businesses.
“While we recognize that CEOs expressed less enthusiasm for growth in the hospitality and leisure industry (44 percent) and it remains a concern, in The Bahamas, with tourism being our main industry, we remain positive.
“The Bahamas, like other countries, has implemented travel regulations to ensure the safety of our people and our guests. Travelers have become accustomed to these policies and we see this in the numbers.
“Last year, we saw an uptick in our tourist arrivals and it is anticipated that this trend will continue with more tourists returning to our shores in 2022 and beyond.”
Rahming noted: “With the government’s plan to enhance revenue, its focus on a blue economy and climate change, we see these actions as positive indications that we are on track to diversify several industries in an effort to improve our revenue, resulting in a more gradual return to a healthier economy.”
Bob Moritz, global chairman, PwC said: “While the ongoing pandemic and emergence of new variants cast a shadow over the year, the high level of CEO optimism we found speaks to the strength and resilience of the global economy and the ability of CEOs to manage through uncertainty.
“There is nothing ‘normal’ about the world we are working in, but we are getting used to it. We are seeing differences in confidence among countries, and there is no shortage of challenges to navigate, but it is encouraging that CEOs we spoke with on the whole feel positive about 2022.”
For more details about the survey, visit https://www.pwc.com/gx/en/ceo-agenda/ceosurvey/2022.html.
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