CEOs of companies operating in Cyprus are optimistic about the growth prospects of their companies as well as that of the global economy, according to the findings of PwC’s 21st Annual Global CEO Survey.
This year’s survey, entitled “The Anxious Optimist in the Corner Office”, saw the participation of almost 1,300 CEOs in 85 countries. PwC Cyprus carried out the local survey for the 7th consecutive year, with the participation of 67 CEOs in Cyprus.
An analysis showed that CEOs are particularly optimistic, both at global and at Eurozone level, while in Cyprus, they are more optimistic than ever. More specifically, 52% of CEOs in Cyprus believe global economic growth will improve, much higher than the 36% in 2017 and 33% in 2016.
They are also confident about the revenue growth prospects of their own company over the next 12 months with 85% of CEOs in Cyprus confidents about their company’s prospects for revenue growth, slightly up on the corresponding figure of 83% last year. The results are similar for a three year time frame with 91% voicing optimism compared to 85% in 2017.
According to the survey, the priority for CEOs in Cyprus is organic growth with 69%, followed by new strategic alliances or joint ventures with 51%. At the same time, there is a significant drop as regards cost reduction, with the percentage falling to 48% from last year’s 65%. It is worth noting that 63% of CEOs in Cyprus believe that they will increase headcount at their organisation over the next 12 months. This demonstrates a positive outlook for the future and confirms the more general optimistic climate.
As regards the countries they consider important for their company’s growth prospects, Greece was the first choice for CEOs in Cyprus with 54%, followed by the United Kingdom with 52%, Russia with 34% and Germany with 21%.
Despite the more general prevailing optimism, there is nevertheless increased concern for a wide range of the business, social and financial threats. The biggest concern for CEOs in Cyprus is the future of the Eurozone with 79%, followed by geopolitical uncertainty and over-regulation with 78%. Also cited are an increasing tax burden with 70%, uncertain economic growth with 69% and terrorism which features in the top five threats at a global level for the first time with 67%. Moreover, the speed of technological change (67%), cyber threats (66%), availability of key skills (64%) and changing consumer behaviour (57%), are cited as the most significant business threats for CEOs in Cyprus as regards their company’s growth prospects.
The results of the survey were presented by Mr Philippos Soseilos, Advisory Partner at PwC Cyprus at a special event held on Wednesday, 11 April 2018. Taking part in the discussion that followed the presentation were the PwC Cyprus CEO, Mr Evgenios Evgeniou, the CEO of Cablenet Communication Systems Ltd Mr Nicolas Shiacolas and the CEO of Hermes Airports Ltd Mrs Eleni Kaloyirou, who participated in the survey with an in-depth interview.
Commenting on the results of the local survey, PwC Cyprus CEO Mr Evgenios Evgeniou said: “The majority of CEOs in Cyprus believes that global economic growth will improve. This appears to be in part a result of the strengthening of the Cypriot economy which has recorded stronger rates of growth that in the last quarter of 2017 reached 3.9%. Increasing productivity, attracting productive investments, reforms that will enhance competitiveness and innovation are the next big bets that Cyprus must win.”
The survey’s results are available on www.pwcceosurvey.com.cy.