The 12th Annual Global CEO Survey shows how the financial crisis has shattered short-term confidence. The percentage of CEOs who were ‘very confident’ about their one-year revenue growth prospects dropped to 21%, the lowest level in six years. For this years survey 1,124 interviews were conducted with CEOs in 50 countries during the last quarter of 2008. By regions, 500 interviews were conducted in Europe, 276 in Asia Pacific, 168 in Latin America, 138 in North America and 42 in the Middle East and Africa. The majority of interviews were conducted by telephone. Main findings from the report:
Nearly 70% of CEOs believe their companies will be affected by the credit crisis. Of those, nearly 80% say that they face higher financing costs, and nearly 70% say that they will delay planned investments as a result. Companies in the banking, utilities, construction, entertainment and automotive sectors are most likely to be affected. Only 15% of CEOs in North America and 15% in Western Europe express confidence about their growth prospects for the next 12 months. This compares with 21% in the emerging economies of Central and Eastern Europe, 31% in Asia Pacific, and 21% in Latin America. Most CEOs around the world are planning for a slow recovery.
In terms of energy and environmental issues, more than 80% of CEOs are taking steps to reduce energy costs by finding efficiencies in their operations, and more than half are seeking alternative sources of energy. Sixty-one percent of CEOs say that the dependence on carbon-based energy will have an impact on the long-term success of their businesses. Fifty-six percent say the same about climate change, 55% about overpopulation, and 50% about a scarcity of fresh water.
The full report and supplements to the survey can be downloaded from the PricewaterhouseCoopers website.
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