88% of CEOs in Australia expecting economic growth in 2022: PwC

PwC Australia’s 25th CEO Survey reveals high domestic business confidence with 88% of CEOs surveyed expecting economic growth in Australia.

While CEOs continue to face pressure generated by the ongoing COVID-19 pandemic and market conditions such as rising inflation, supply chain disruptions and the impending ‘Great Resignation’, 76% of them are expecting global economic growth and 98% are confident about their own company’s prospects for revenue growth over 2022.

However, the CEOs are worried about some additional threats that may hinder their growth in 2022. 

In addition to health and economic challenges, the CEOs identified three key challenges: cybersecurity, climate change, and skills shortages.

Tackling old & new business threats

Cybersecurity tops the list of risks to business growth, with CEOs in Australia significantly more concerned than their global peers, followed by ongoing COVID-19 issues and climate change. 100% of CEOs in Australia are concerned about cybersecurity, and 71% are very or extremely concerned, compared to only 50% for their global counterparts.

90% have some level of concern about the impact of climate change to their business over the next 12 months, driven by expectations from customers, employees and investors. 

Skills shortages are also causing concern. Two third of the respondents are worried about the impact of COVID-19 and health-related risks on attracting and retaining talent in 2022. 

However, the report suggests that CEOs and Boards have the scope to further build trust and create measurable value by including environmental, social and governance (ESG) metrics into their long-term corporate strategies and CEO remuneration plans.

“These are long-term issues that will define the kind of world we live in and shape the future. As leaders, we need to find new ways to solve these important problems in order to build trust and deliver sustained outcomes - not only for our companies but for our broader communities and generations to come," PwC Australia’s CEO Tom Seymour said.