A majority of corporate bosses surveyed by PricewaterhouseCoopers (PwC) in Barbados and five other Caribbean countries are optimistic about this year’s global economic prospects.
PwC says that almost 70 per cent of Caribbean chief executive officers (CEOs) expect global economic growth to increase over the next 12 months, based on the Caribbean results from the firm’s 28th Annual Global CEO Survey, which was launched during the recent World Economic Forum Annual Meeting.
PwC said it surveyed 4 701 CEOs across 109 countries and territories, including the Caribbean territories of, The Bahamas, Barbados, Bermuda, Guyana, Jamaica and Trinidad and Tobago, from October 1 to November 8.
PwC East Caribbean territory leader Ross Parker said of the survey “reveals that Caribbean business leaders are optimistic about the future but recognise the need to reinvent value creation”.
“Three-plus decades of digitisation have started to break down formerly impermeable boundaries between sectors,” he said.
Parker also said that the combined impact of the climate transition, artificial intelligence (AI), and other megatrends will increase this reconfiguration.
Increase headcount
“To thrive, leaders must make bold strategic decisions, integrating [generative] AI into core processes and exploring new growth opportunities.”
PwC said the report found that 42 per cent of global CEOs expect to increase headcount by five per cent or more this year, which is more than double the proportion who expect headcount decreases (17 per cent).
“Responses for Caribbean CEOs are very similar with 44 per cent expecting to increase headcount and half that expecting to decrease (22 per cent),” it noted.
“While CEOs are optimistic about the global economy, cyber risks (31 per cent), closely followed by inflation and workforce capabilities (both 28 per cent) remain the top risks for the year ahead, cited by Caribbean CEOs.
“Meanwhile, macroeconomic volatility (29 per cent) tops the global results and the differences in top threats further changes depending on which region they are based.”
PwC said further that “consistent with the last two years, four in ten (42 per cent) CEOs globally believe their company will not be viable beyond the next decade if it continues its current path”.
“The dial hasn’t moved much from the last Caribbean CEO Survey either (released in January 2023). There is a marginal decrease (30 per cent to 28 per cent) of those CEOs who believe their business won’t be viable in ten years,” it reported.
“But CEOs are taking action – across all sectors, over one half (58 per cent) have taken at least one significant action to change how their company creates, delivers and captures value in the last five years, with CEOs who have taken more reinvention actions in the last five years reporting higher profit margins in the last 12 months.”
The firm said, however, that “the pace of reinvention is slow, and a large majority of companies lack agility”.
“When it comes to moving budget and people between projects and business units, around half of Caribbean CEOs told us that they reallocate ten per cent or less of financial and human resources from year to year, consistent with global findings. Around three quarters reallocate less than 20 per cent,” said PwC. (SC/PR)
