PwC: Romanian CEOs upbeat about the growth perspectives in 2014

Romanian CEOs are confident in their companies perspectives for revenue growth, with 86% somewhat or very confident of growth in the next 12 months and 39% very confident. On the longer run, 96% are somewhat or very confident of growth over the next three years and 49% very confident.

2014-01-23 13:09:45

Globally, twice as many CEOs around the world as last year believe the global economy will improve in the next 12 months, and 39% say they are very confident their company's revenues will grow in 2014, according to PwC's 17th Annual Global CEO Survey.

The number of CEOs who see improvement in the global economy over the next 12 months leapt to 44%, up from only 18% last year. And just 7% predict the global economy will decline, sharply down from 28% in 2013.

Regionally, CEOs in Western Europe are the most confident about short-term global economic prospects (50%), in line with signs of improving conditions. They are followed by those in the Middle East (49%), Asia Pacific (45%), Latin America (41%), North America (41%) and Africa (40%). CEOs in Central and Eastern Europe show the lowest level of confidence at 26%, yet Romanian CEOs are significantly more optimistic about the world economy, with 45% of respondents confident that the global economy will improve in the next 12 months, compared to just 13% last year.

"Surveys that measure expectations are very good lead indicators of economic trends. The significant increase in the number of CEOs confident in the near term growth of their companies' revenues might signal that we are moving into an expansion stage of the world economy, which will probably last longer (expansions are usually longer than recessions), but could have a slow growth rhythm. For example, in the US, before the onset of the recession in 2007, the economy grew for almost 16 years continuously (since 1991), with the single exception of two quarters in 2001, triggered by the 9/11 terrorist attacks. Yet, this does not guarantee that the future expansionary stage will last as long", stated Vasile Iuga, Country Managing Partner, PwC Romania.

By industry, CEOs in the Hospitality and Leisure sector are most confident about prospects for the next 12 months (46%), followed by those in Banking and Capital Markets (45%), Retail (44%), Financial Services (44%), Asset Management (44%), Communications (44%), and Engineering & Construction (41%). CEOs in the Metals industry are least confident at 19%.

"CEOs have successfully guided their companies through recession and now more CEOs feel positive about their ability to increase their revenues and prospects for the global economy. However, CEOs also acknowledge that generating sustained growth in the post-crisis economy remains a challenge, especially as they deal with changing conditions like slowing growth in the emerging markets", said Vasile Iuga.

"Worries continue to loom large on CEO horizons with CEOs sending a clear message to government with their levels of concerns about over-regulation, fiscal deficits and tax burdens at their highest levels. For the future, CEOs tell us that they expect three major global trends, rapid technological advances, demographic changes and shifts in economic power, will have a major impact on the future of their businesses. Finding ways of turning these global trends to their advantage will be the key to future success," added Vasile Iuga.