CEOs confident of pre-crisis level growth

In the longer term,94 per cent CEOs are now confident of growth in the coming three years,an increase of two percentage points.

CEOs confidence in future growth has returned to nearly pre-crisis levels,according to PwCs 14th Annual Global CEO Survey. In the worldwide poll of 1,201 CEOs,48 per cent said they were very confident of growth in the next 12 months a major shift from the 31 per cent last year who were very confident and approaches the 50 per cent reached in 2008 before the onslaught of the economic crisis.

In total,88 per cent of CEOs said they now have some level of confidence for prospects in the next 12 months,up from 81 per cent last year,PwC said in a media release Wednesday. In the longer term,94 per cent CEOs are now confident of growth in the coming three years,an increase of two percentage points.

Renewed confidence was spread across all continents,with CEOs in India,Austria,Colombia,Peru,China,Thailand and Paraguay particularly upbeat about short-term growth. Regionally,CEOs in Western Europe were the least confident. German CEOs were an exception,with nearly 80 per cent of CEOs very confident, up from about 20 per cent last year. The survey results were released at the World Economic Forum annual meeting in Davos.

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On this renewed sense of confidence,Dennis M. Nally,chairman of PwC International,said,CEOs have emerged from the bunker mentality of surviving the recession. They now see renewed opportunity for growth,even in the near term,and are determined to take advantage of better global economic conditions and increased customer demands.

On the pattern of recovery and the future that lies before,Nally added,The post-recession global economy is recovering on two-tiers. Emerging economies like China,India and Brazil are growing at rates that far surpass the developed nations. The shift in the economic balance of power creates challenges for CEOs in deciding how and where to invest in facilities,people and innovation. Companies that understand and capitalise on the diverging growth patterns of the developed and emerging economies will be the winners in the years ahead.

CEOs said they considered China the most important country for future growth. China was named by 39 per cent of CEOs,followed by the US,21 per cent; Brazil,19 per cent; and India,18 per cent. Also,China,the US and India were seen as the most important future sources for products and raw materials.

Regionally,90 per cent of CEOs said they expect their operations to grow in Asia in the next 12 months.