Biggest Threat To Economic Growth For Business Leaders Comes From Geopolitics
This conclusion can be drawn from the new publication “CEO Outlook 2023” of the international consulting company KPMG. The study collected and analyzed the opinions of more than 1,300 company executives from around the world
The international consulting company KPMG has published the ninth edition of its annual CEO Outlook 2023 report, which collects opinions on the current situation and prospects for the development of global business from more than 1,300 executives of multinational companies. They face “many challenges,” the most troubling of which is related to “geopolitical pressure.” However, the majority of respondents remain confident in their business prospects over the next three years.
“The majority of executives of large global companies view geopolitical risks and the fragmentation of the international order as the main obstacle to growth,” write the authors of the KPMG CEO Outlook 2023 report. The document collects, systematizes, and analyzes the opinions of executives of the world’s leading industrial companies. Particularly significant are “concerns about the impact of geopolitical tensions on supply chains and on company operations.”
Nevertheless, the majority of top managers – 73% of CEOs, up from 71% last year – expressed “confidence in the global economic growth outlook over the next three years.” However, 77% of respondents said that tightening the monetary policy, primarily raising rates, threatens to “jeopardize global economic growth,” while “inflationary pressure could have a negative impact on business growth.”
The KPMG report was prepared under the guidance of Kathryn Wright. It also highlights the interest that top managers are showing in artificial intelligence: 70% would like to “invest in generative AI,” but more than half are concerned about “ethical issues.”
Regarding the application of ESG criteria, about 70% of executives said that they are “very important in company strategies.” ESG (environmental, social, and governance) criteria are measures of a company’s commitment to three dimensions – environment, social, and governance – that are designed to measure how sustainable and responsible it is.
Finally, following the Covid pandemic, 64% of business leaders favor a return to in-person work within the next three years.
