Earlier this month, PwC released its 20^th annual “Global CEO Survey,” comprised of data compiled from interviews with 1,379 CEOs from 79 countries. Conducted during the last quarter of 2016, the Survey interviewed CEOs about their outlook on the global economy and how they believe it will impact their businesses.

The majority of CEOs in Asia Pacific believe that global economic growth will stay the same in 2017, while 28% believe it will improve. In regards to revenue growth in 2017, 49% of CEOs responded that they were “somewhat confident” in their companies’ financial prospects this year, while 31% indicated they were “very confident.” When it came to confidence in revenue growth over the next three years, however, 50% of CEOs stated they were “very confident,” while 40% were “somewhat confident.”

For 77% of Asia Pacific CEOs, a priority this year is organic growth; for 53%, it is cost reduction; and for 53% it is new strategic partnerships or joint ventures. Only 11% of CEOs indicated that they plan to sell a business or exit a market in 2017, while 15% and 22% specified interests in outsourcing and collaborating with entrepreneurs or start-ups, respectively.

Regionally, 56% of CEOs feel the US is the most important country for their companies’ overall growth prospects in 2017, followed by China at 38% and the UK at 16%. When it comes to potential economic, policy, social and environmental challenges to their companies’ growth, 36% of CEOs are most concerned about over-regulation,  36% cited uncertain economic growth, 32% are concerned about exchange rate volatility, while 25% noted increasing tax burdens and 25% identified geopolitical uncertainty. In regards to business threats, 39% of CEOs cited concern for the availability of key skills, 39% identified the speed of technological change, and 35% chose changing consumer behavior. To capitalize on new opportunities, 24% of CEOs aim to strengthen innovation capabilities, while 15% aim to increase human capital and 14% plan to bolster their competitive advantages in the market.

Source: PwC