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RESEARCH, ANALYSIS & TRENDS




PwC: ASEAN CEOs


most optimistic about

Global Economy for 2015





At the opening of the World Economic Forum Annual Meeting CEOs in the Asia Pacific region (45%) are also confident of
in Davos, Switzerland last week, PwC released its 18th Annu- revenue growth, about the same as last year. The Middle
al Global CEO Survey, revealing that fewer CEOs than last
year think global economic growth will improve over the next East is still one of the most optimistic regions with 44% of
12 months, whereby CEOs in ASEAN are the most confident CEOs being very confident of revenue growth, although this
and Russia’s CEOs the most pessimistic. is down markedly from last year’s 69%. CEO confidence in
growth is higher in North America, rising to 43% from 33%.
Global Economy CEOs in Western Europe (31%) and Central and Eastern

CEOs are less optimistic about global growth prospects than a Europe (30%) are least optimistic about their company’s
year ago with 37% thinking global economic growth will im- growth prospects.
prove in 2015. This is down from 44% last year. Significantly,
17% of CEOs believe global economic growth will decline, Looking country by country, India’s CEOs top the list, with
more than twice as many as a year ago (7%). The remaining 62% that are very confident in their short-term growth pro-
44% expect economic conditions to remain steady.
spects. Other leading countries include Mexico (50%), the US
Regionally, the results show wide variations. CEOs in ASEAN (46%), Australia (43%) the UK and South Africa (39%), China
are the most optimistic about the global economy with 49% (36%), Germany (35%) and Brazil (30%). Among the least
anticipating improvement, followed by Asia Pacific (45%), the confident countries are France (23%), Venezuela (22%), Italy
Middle East (44%) and North America (37%). On the other (20%), Argentina (17%) and, at the bottom of the list, Russia,
hand, only 16% of CEOs in Central and Eastern Europe ex- with only 16% of CEOs being very confident of revenue
pect economic improvement. CEOs in emerging economies
like India (59%), China (46%) and Mexico (42%) are more growth for 2015. This is down from 53% last year when Rus-
optimistic about the economy than those in developed econo- sia’s CEOs were the most confident in the world.
mies like the US (29%) and Germany (33%).
Commenting on the survey results, Yeoh Oon Jin, said: “The
Revenue Growth world is facing significant challenges: economically, politically

Despite the overall declining outlook for the global economy, and socially. Globally, CEOs overall remain cautious in their
CEOs remain confident about prospects for their own compa- near-term outlook for the worldwide economy, as well as for
ny: 39% worldwide said they are ‘very confident’ their compa- growth prospects for their own companies. While some ma-
ny’s revenues will grow in the next 12 months, just as last ture markets like the US appear to be rebounding, others
year, though up slightly from 36% in 2013.
such as the Eurozone continue to struggle. And while some
emerging economies continue to expand rapidly, others are
Regionally, ASEAN CEOs are more confident of revenue slowing. Finding the right strategic balance to sustain growth
growth at 47% when compared with the global average of in this fast changing marketplace remains a challenge. CEO
39%. This is also up from last year’s figure of 45%. In the confidence is down, notably in oil-producing nations around
longer term, 54% of ASEAN CEOs are very confident of their the world, due to plummeting crude oil prices. Russia CEOs,
own company’s prospects for revenue growth over the next for example, were the most confident in last year's survey, but
three years – higher than the global average of 49%. On top of are the least confident this year. Confidence also slipped
this, 71% of ASEAN CEOs said that there are more growth among CEOs in the Middle East, Venezuela, and Nigeria.”
opportunities for their company today than there were three
years ago, again higher than the global average of 61%. Strategies for Growth

“The increase in CEOs’ confidence in their companies’ reve- Globally, CEOs rank the US as their most important market
nue growth in ASEAN is a strong signal that business senti- for growth over the next 12 months, placing it ahead of China
ment in the region remains strong despite a less optimistic for the first time since PwC started asking this question five
outlook globally. We are confident that Southeast Asia, as a years ago. Overall, 38% of CEOs say the US is among their
region, will continue to grow as an attractive investment desti- top-three overseas growth markets, compared with 34% for
nation. This bodes well for Singapore as we remain as a fa- China, 19% for Germany, 11% for the UK and 10 % for Brazil.
vored regional headquarter location” Yeoh Oon Jin, Executive
Chairman, PwC Singapore commented. In contrast, 46% of ASEAN CEOs name China as the most
important market to them for growth over the next 12 months,

followed by the US (38%), and Indonesia (21%).
6 Asian eMarketing January 2015 - Digital Marketing Trends & Predictions
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