Compared with 2014, the sense of confidence about economic growth and economic perspectives has grown 69% among business executives in Europe, 66% in Asia and Pacific Region and 52% in USA, according to results of CEO Outlook Study 2015 carried out by KPMG.
Looking at their company’s development chances, 70% of CEOs in Europe and 68% Asia and the Pacific region admit they are now more confident than they were one year ago. CEOs in USA, where economic recovery has been noted for a long time, are 19% more confident about economic growth than they were one year ago.46% are as confident about their own economic growth perspectives. Young job seekers also have a lot to look forward to – CEOs around the world are prepared to take on new staff. 78% of respondents admit they plan to constantly expand their employee roster up until mid-2018.
«The rise of optimism is also good news for Latvia. This opens up new investment-attraction options for local companies in Latvia and development of business relations in other countries. It should come as no surprise there has been increased interest for Latvia among American investors lately, especially in the field of IT and new technologies. Economy of USA is currently developing more rapidly than that of Europe. With that, the appetite of American investors grows more rapidly than anywhere else in the world. Latvia’s economic development trends in early 2015 have demonstrated positive development: GDP growth is higher than previously planned in exports and domestic consumption. On the one hand, decline of exports to Russia has been compensated by increased export volumes to markets like Lithuania, Denmark, Britain and USA. On the other hand, the growth of wages contributes to domestic consumption. However, Latvia remains dependent on political and economic development in Russia and the recently surfaced economic fluctuations in China,» – comments KPMG Baltics partner Armine Movsisyana.
The biggest headache for businessmen is caused by the growing competition pressure. 86% of respondents also say they are concerned about their clients’ loyalty, 74% are worried about the growing influence of market newcomers, 72% are cautious about their ability to keep up with developments of new technologies and 68% are worried competitors could take over their business.
The study shows that only 44% of CEOs are ‘somewhat satisfied’ with their current business model. 5% expressed their dissatisfaction and 29% of CEOs said they plan to carry out major changes in the next three years.
In regard to the most important investment plans for the next three years, CEOs mentioned expansion beyond their country’s borders as the main priority. American CEOs have Europe in their sights, especially Central Europe, as well as South America and China. CEOs in China, Japan, Britain, Germany, Spain and France see USA as a region with the largest growth potential.