CEOs increasingly worried about global economy

Graeme Sunley, Territory Leader, PwC Cayman

(CNS): Nearly 30% of business leaders believe that world economic growth will decline in 2019, compared to just 5% last year, according to the results of PricewaterhouseCoopers’ latest annual survey of more than 1,300 CEOs. Graeme Sunley, Territory Leader, PwC Cayman Islands, said that despite Cayman’s competitive advantages, in the changing world the jurisdiction will still need to work hard to keep people and companies here. In 2018 CEOs were very optimistic but this year it’s a different story and Cayman will need to smooth the way to keep attracting business.

“In Cayman our hallmarks of risk-based and pragmatic regulation and speed to market clearly count in our favour in a highly competitive, global marketplace. That said, we have to continue to work hard to attract and retain both people and companies,” Sunley stated in a release about the new survey.

“CEOs have turned their focus to navigating the surge in populism in the markets where they operate. Trade conflicts, policy uncertainty, and protectionism have replaced terrorism, climate change, and increasing tax burden in the top ten list of threats to growth. And so, we must be careful to minimise impediments for international companies to do business in Cayman,” he added.

Sunley said that this jurisdiction must also move fast to take advantage of the undoubted opportunity that has been created by the need for offshore companies domiciled here to meet the economic substance tests.

“We must also consider the workforce that is required for the future,” he said. “Technological changes continue to disrupt the business world, and people with strong data and digital skills are in even higher demand and increasingly harder to find. That said, the need for people with soft skills is also critical, which is why business, government and educational institutions need to work together to address the demands of the evolving workforce.”

The international survey, which was launched in Davos at the recent World Economic Forumm and the record jump in pessimism is in vivid contrast to last year’s record jump in optimism about global economic growth prospects and underscores the growing concerns and uncertainties in the world this year.

“CEOs’ views of the global economy mirror the major economic outlooks, which are adjusting their
forecasts downward in 2019,” said Bob Moritz, Global Chairman, PwC. “With the rise of trade
tension and protectionism it stands to reason that confidence is waning.”

The impact of artificial intelligence, trade conflicts, policy uncertainty, and protectionism are among the things fuelling the decline in optimism with the trade issues between China and the US causing particular concern.

See the results of the survey here

PwC media release – CEO Survey 2019