CEOs say prospects gloomy for global economy

Nearly half (48%) of the 1,258 CEOs polled worldwide believe the global economy will decline even further in the next 12 months, according to PwC’s 15th AnnualGlobal CEO Survey. Just 15% said the global economy will improve during 2012.

However, nearly three times as many CEOs are confident in their own companies’ growth prospects for the next 12 months than in the outlook for the global economy, suggesting CEOs believe they have learned how to manage through difficult and volatile economic times.

Forty percent of CEOs said they are ‘very confident’ of revenue growth for their companies in the next 12 months, down from the 48% last year - though still up from the 31% who were ‘very confident’ in 2010.

In addition, more than half of CEOs worldwide expect to increase headcount in the next 12 months, although the picture changes from sector to sector with hiring much more likely in entertainment and media than elsewhere.

Unsurprisingly, the biggest decline in confidence was in Western Europe. Beset by the sovereign debt crisis, just a quarter of European CEOs said they were very confident of revenue growth, down sharply from nearly 40% last year. Short term confidence also fell among CEOs in Asia Pacific to 42% from 54% last year. China saw the biggest decline in confidence in the Asia Pacific region with 51% of CEOs feeling ‘very confident’, down from 72% last year.

There was also a marked decline in confidence in India with only 55% of Indian CEOs very confident of revenue growth, down from 88% last year. In the US, 41% of CEOs said they were very confident of short term growth, down from 45% last year. Confidence increased, however, among CEOs in Africa, where 57% said they were expecting growth, up from 50% last year.

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