Kiwi CEOs pessimistic about global economy

  • 19/02/2016
Pensive businessman with hand on chin looking away and holding a document, selective focus, glasses on foreground

The confidence of New Zealand's private sector leaders in the global economy improving has plummeted, though many remain optimistic about their own businesses.

Just 23 percent of chief executives questioned in PricewaterhouseCoopers' annual CEO survey believe the global economy will get better in 2016, halving from 47 percent the year before.

About half the CEOs surveyed believe the global economy will stay the same.

"Given the wide-ranging uncertainties CEOs are facing - cyber security, over-regulation, geopolitical stability - it's easy to see why they're divided about whether there are more threats or opportunities today," PwC New Zealand chief executive Bruce Hassall said.

"But it's not all doom and gloom. Kiwi organisations are remaining optimistic about their own growth prospects despite the possibility of a stagnant or declining global economy."

A vast majority of New Zealand businesses are confident about their company's growth prospects in the coming year, with 40 per cent very confident and another 51 percent are somewhat confident.

A dearth of available employees with key skills is listed as the top consideration for chief executives while cyber threats and over-regulation is also among the chief concerns.

The oncoming Trans-Pacific Partnership echoes the sentiments of many businesses (77 percent) which believe the world is moving towards regional trading blocs rather than one global marketplace.

Only 23 percent believe in a global trading market.

NEW ZEALAND'S CEO SURVEY

* Positivity about global economy - 23 pct

* More opportunities for growth - 55 pct

* More threats - 66 pct

* Plans to cut costs - 64 pct

* Most important growth market - United States, 39 pct

* Worried about cyber threats - 77 pct

* Main trading partner - Australia, 70 pct

* Worried about over-regulation - 74 pct

Source: PricewaterhouseCoopers New Zealand CEO Survey

NZN

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