A majority of global CEOs, 73%, believe global economic growth will decline over the next 12 months, according to PwC’s 26^th “Annual Global CEO Survey” released last month. The CEOs’ outlook is the most pessimistic they have been regarding global economic growth since PwC began asking this question 12 years ago.

In comparison, CEOs asked the same question in 2022 were much more optimistic, with 77% saying they thought economic growth would improve.  

“A volatile economy, decades-high inflation and geopolitical conflict have contributed to a level of CEO pessimism not seen in over a decade,” PwC Global Chairman Bob Moritz said.

It also found nearly 40% of CEOs think their organisations will not be economically viable in a decade if they continue on their current path. The pattern is consistent across a range of sectors, including telecommunications (46%), manufacturing (43%), healthcare (42%) and technology (41%). CEO confidence in their own company’s growth prospects also declined dramatically since last year (-26%), the biggest drop since the 2008-2009 financial crisis when a 58% decline was recorded.

Forty percent of CEOs cited inflation and 31% cited macroeconomic volatility as the leading short-term risks this year.

In response to the situation, 52% of CEOs report they are reducing operating costs, 51% are raising prices and 48% are diversifying product and services offerings. On the flip side, CEOs are interested in keeping their workforces. Sixty percent said they do not plan to reduce the size of the workforce in the next 12 months. In addition, 80% said they do not plan to reduce staff remuneration in order to retain talent. 

The survey included 4,410 CEOs in 105 countries and territories. It took place between October 2022 and November 2022.