The percentage of CEOs optimistic about global growth prospects increased from 18% to 38% as macroeconomic volatility and inflation declined. But in the medium term the trend reverses: almost half believe their companies will no longer be profitable in a decade, given accelerating technological and climate pressures.
In Argentina the 82% believe their companies will not grow and 56% are preparing for a decline in GDP in 2024, but in the medium term the trend is reversed: 53% believe it will grow again in the next three years.
Globally, 39% expect their company’s headcount to increase by 5% or more in 2024.
Confidence is weak: Nearly half (45%) believe their companies will not be profitable in a decade if they don’t reinvent themselves, up from 39% in 2023.
CEOs expect to experience more pressure in the next three years than they have experienced in the past five years related to megatrends technological and climatic.
Four in ten CEOs say they have accepted lower returns for climate-related investments.
70% expect generative artificial intelligence (“AI”) to significantly change how their companies generate value in the next three years.
This was revealed by the 27th edition of PwC’s Global CEO Survey published today at the Economic Forum which has just begun in the Swiss Alpine village and where Javier Milei will arrive tomorrow.
The survey was carried out in 4,702 CEOs from 105 countries and territories warns that the proportion of executives who express Concern about the long-term sustainability of their companies increased to 45% given accelerating technological and climate pressures.
In most regions of the world, CEOs are also more optimistic about their countries’ economic growth prospects. However, those in North America and Western Europe are going against the grain. In Western Europe, 32% expect their national economy to improve and 48% to worsen; in North America these figures reach 31% and 52% respectively.
Argentina, contrary to the region and the world
The optimistic trend is similar in Latin American countries (35% of positive responses resulted), except in Argentina, where 82% of executives consulted say their companies will not grow in 2024, 56% are preparing for a decline in GDP and two in 10 think this decline will be significant.
Local pessimism contrasts with the landscape in neighboring countries: in Brazil and Uruguay, 55% and 61% of CEOs expect growth respectively.
However, Argentine CEOs maintain good prospects for the future: 53% think it will grow further in the next three years. Among those interviewed in our country, inflation represents the greatest concern (61%), followed by economic volatility (53%) and cyber attacks (26%). The more structural issues are distant, but are decisive in the medium and long term, such as the climate crisis (12% of responses), social inequality (21%) or geopolitical conflicts (12%).
Miguel Urus, managing partner of PwC Argentina, expressed: “In the case of Argentina Inflation is the top concern for CEOs, followed by macroeconomic volatility and cyber attacks. We face a local landscape of uncertainty and winds of change that shape our roadmap, and the challenges of the local situation must be balanced with medium and long-term demands for transformation: an agenda that will require an extra share of skills and concentration throughout 2024”.
The obstacles to change, according to Argentine leaders
The survey also revealed global, regional and local barriers that executives say are hindering their companies’ growth. In this sense, for Argentine entrepreneursthe main obstacle they face today is the regulatory environment (58% placed them first), followed by an instability in the supply chain (30%) and then the limitations on access to financial resources (28%). The weight attributed by Argentine leaders to regulation is higher than regional opinion, where 42% attribute great importance to it, and global opinion (36%). Local CEOs place less relative importance on internal obstacles: lack of employee specialization was mentioned by only 7% of respondents, internal bureaucracy by 9% and only 11% mentioned lack of support from the board of directors administration.
The imperative to reinvent yourself
As they become more aware of the megatrends plaguing businesses around the world, nearly half (45%) are concerned profitability of their companies beyond the next decade if they do not reinvent themselves — up from 39% in 2023. The survey primarily indicates that smaller companies are most at risk: 56% of CEOs of companies with annual revenue under $100 million believe they will no longer be profitable in 10 years or less if they continue the same path. This percentage drops to 27% for companies generating annual revenue of $25 billion or more.
97% of respondents did so has taken steps over the past five years to make changes to its business model, and 76% indicate that at least one measure adopted has had a significant or very significant impact. Despite this, they face several challenges: 64% believe the regulatory environment limits their ability to reinvent their business model, 55% point to competing operational concerns, and 52% cite a skills shortage specific to their force Work. They also perceive significant inefficiencies in several routine business activities – from decision-making meetings to emails – and believe that approximately 40% of the time spent on these activities is inefficient.
Bob Moritz, global CEO of PwC, concludes: “The data collected this year suggests a level of high uncertainty among CEOs about the future, but they are already acting. They are transforming their business models, investing in technology and their people, and managing the risks and opportunities posed by the climate transition. “If companies want to thrive in the short and long term, build trust and deliver long-term sustainable value, they will need to accelerate the pace of reinvention.”
Source: Clarin
