Global poll reveals diverging sentiment among business leaders and investors
Three quarters (76%) of global institutional investors are expecting the economic climate to improve in 2023, but business leaders don’t agree.
Almost the same share (73%) of CEOs think that the global economy will get worse in the year ahead, although there are some regional variations.
The survey by CEO advisory firm Teneo included more than 300 public company CEOs and institutional investors representing more than US$3 trillion of company and portfolio value.
CEOs from the Americas are less bearish on the economic outlook than their counterparts in the rest of the world, with 45% expecting the economy to “improve a bit” and 32% expecting it to “improve a lot”; compared to the majority in Europe who expect it to “worsen a bit” (56%) or “worsen a lot” (17%); and in Asia where 44% expect slightly worse conditions and 11% expecting the worst.
Key factors
More than half of respondents said that deglobalization is already underway and 86% believe this is a reality for the global economy.
Even in the face of a looming recession, 15% of CEOs are prioritizing investment in ESG over business performance, and more than 60% of CEOs and investors (especially in Asia and Europe) are working to balance company performance and ESG commitments.
Innovation is a clear priority for investors, who want business leaders to embrace disruptive technologies. However, CEOs are more conservative and staying on the sidelines, especially in terms of cryptocurrencies and the metaverse.
Investors want companies to be more aggressive in managing risk exposure, specifically around supply chain, societal issues and capital market disruption, while CEOs cite external stakeholder pressure and access to actionable information as the top two challenges when leading through disruption.
"Now, more than ever, it is essential that CEOs have a clear understanding of how investors view the overall trajectory of the global economy and what the market expects of them as a result,” said Ursula Burns, chairwoman of Teneo. “Conventional wisdom no longer applies. There will be clear winners and losers in the new operating environment. Those with the highest chance of success are those who adapt quickly and effectively."
