KPMG 2022 CEO Outlook released on Tuesday shows that the global economic confidence over the next three years has rebounded 71 per cent from 60 per cent in early 2022. Majority of CEOs, however, believe that a recession is coming in the next 12 months and that it will make post-pandemic recovery harder.
While cybersecurity was listed as the top risk to growth in February 2022, the latest survey shows that CEOs feel emerging technology is the greatest threat to growth. Seventy-one per cent CEOs predicted it will impact company earnings by up to 10 per cent.
Talent is the top operation priority for CEOs. Over two-thirds of CEOs (71 per cent), agree the ability to retain talent with the pressures of inflation are top of mind. Long-term impacts to organisations from the pandemic and geopolitical tensions are the other big challenges. T V Narendran, CEO and Managing Director of Tata Steel said in the survey, “To me, geopolitical issues are the number one risk. I think we all need to build optimised and resilient supply chains.”
With a recession looming, there’s a significant short-term emphasis on hiring freezes and headcount reductions. In the long-term however, the KPMG survey said, 79 per cent CEOS expect their organisation’s headcount to increase over the next three years.
The survey of more than 1,300 CEOs at the world’s largest businesses including in India, found that despite economic concerns, f47 percent CEOs have a high appetite for mergers and acquisitions.