JUST ONE in five company chief executives say they are very confident of revenue growth over the next 12 months – down from one in every two last year – according to a survey by consultants PricewaterhouseCoopers (PwC) released on the eve of the annual Davos economic forum.
The survey was published as government leaders, finance ministers, central bankers and senior business figures gather in Davos for the five-day annual meeting of the World Economic Forum, to discuss ways of reviving the global economy and solving the world banking crisis.
PwC found chief executives to be gloomier about long-term growth, and that they were predicting a slow recovery. Only 34 per cent were very confident of growth over the next three years, down from 42 per cent last year.
Just 15 per cent of chief executives in western Europe expressed confidence about growth for the next 12 months, compared with 21 per cent in central and eastern Europe and 31 per cent in Asia Pacific.
“The speed and intensity of the recession has rocked the psyches of chief executives and created a global crisis of confidence,” said PwC global chief executive Sam DiPiazza. “Even in once rapidly emerging economies, companies are now coping with issues like unavailable credit, sluggish credit markets and collapsing demand.”
The head of the WEF has urged participants at Davos this year to respond to the economic crisis by shaping a “new world” as delegates braved heavy snowfall, icy roads and below-zero temperatures yesterday on their way to Davos.
“The whole atmosphere is going to be different,” said WEF founder Klaus Schwab. “To restore confidence you have to establish signposts that the world after the crisis will be different.”
