More than eight in 10 chief executives are optimistic about the growth of their companies over the next three years, according to the annual survey conducted by PricewaterhouseCoopers (PwC) and the World Economic Forum. However, many of them now expect to face competition from companies using electronic commerce on the Internet.

Overall, the survey showed an upbeat tone, despite the problems of the past year. Even in Asia where financial crisis continues, 70 per cent of chief executives are optimistic.

However, despite the general focus on globalisation, almost all chief executives believe their own geographic region will be their greatest opportunity for growth over the next three years.

According to Mr James Schiro, chief executive of PwC, managing directors are paid to take an upbeat view of the future. "As a chief executive, you can't go around not being optimistic, or you won't keep your job for very long," he said.

Most of the executives are also optimistic about the potential for electronic business for their companies. But they also believe that, as well as the additional revenues coming from e-commerce, it will lead to new competition in their sectors.

More than half of all respondents said it was either extremely or somewhat likely that non-traditional competitors would pose a significant competitive threat using e-business as a main channel to their customers.

The electronic commerce era may not be here just yet. Three quarters said that the percentage of their business currently derived electronically was less than 5 per cent.

Inside the Mind of the CEO: The 1999 Global CEO survey is based on interviews with 802 chief executives form North America, Europe, Asia and Latin America from July to September 1998.

The forum is being attended by hundreds of world leaders, business executives and financial experts.