CEOs of many top companies expect global economy to take off in 2022
About 77% of top managers of the world's largest companies expect a significant boost in the global economy in 2022. Notably, executives in India are the most optimistic about global economic prospects. Such results were obtained by PwC with the help of the 25th annual global survey. The study was carried out from October to November 2021. Overall, the 4,446 CEOs from 89 countries were polled.
The majority display optimism about continued economic resilience. Besides, they provided the most upbeat outlooks in the last 10 years. However, 15% of respondents expect a noticeable deterioration in economic conditions this year.
“After a year of human tragedy and extensive economic hardship, it is encouraging to see that the people responsible for making investment decisions and hiring staff are feeling cautiously optimistic about the year ahead. CEOs have faith that growth will return, boosted by the rapid development of vaccines and their rollout in many parts of the world,” Bob Moritz, the Chairman of the PwC Network, said. CEOs have finally learned to cope with uncertainty, he also added.
Nevertheless, PwC admits that the recovery prospects of some countries and regions differ markedly. For instance, India has extended its lead as the number one market whose CEOs (94%) are looking forward to rapid growth over the year. For comparison, last year, this indicator was 88%. Meanwhile, the percentage of CEOs in Japan expressing optimism amounted to 83%, while last year, the figure was 67%. In the UK, 82% of respondents were positive versus the previous reading of 77%.
CEOs in Italy and France are also mainly optimistic about future market conditions. Analysts believe that it is associated with the faster pace of economic recovery in these countries that exceeded expectations. The indicator in Italy reached 89%, notching an 18% increase from last year. In France, the reading advanced by 25% to 85%.
In the United States, business confidence for 2022 decreased by 18%. Only 70% of CEOs are betting on economic recovery. Apparently, the economic outlook is grim in the country due to growing inflation and supply chain disruptions. For the same reason, Brazil also reported a drop in optimism by 7% to 77%. In China, the reading fell by 9% to 62%, and in Germany, the figure came in at 76%, following a 4% drop.