Why Are Australian CEOs Not Very Bullish?

PricewaterhouseCoopers’ (PwC) 19th annual Global CEO survey has indicated that a major number of Australian chief executive officers lack confidence when it comes to mentioning the growth prospects of their businesses.

The survey was launched at the World Economic Forum in Davos, Switzerland, on Friday. Only around one-third of the CEOs have exhibited the required level of confidence and said that they expect the revenue to grow in the next 12 months. In 2015, around 43 percent of bosses showed their confidence on the growth prospects as depicted by the 18th annual meet conducted by PwC.

The survey saw 31 percent in 2016 as some CEOs were expecting financial growth in 2016 in spite of the sudden turmoil in the market scenario. NewsCorp mentioned that the figure, however, was down from 38 percent recorded during the last survey. Almost 57 percent believed that the growth will stay steady this year.

ASX Chief Executive Elmer Funke Kupper said that the world is shouldering a financial liability worth $200 trillion, which is not likely to be repaid prompting destruction in market economy. The comments showed that the CEO was less positive about the growth prospects of businesses in 2016.

“I’m quite concerned about the overall state of the global economy and particularly the level of debt that we have,” the Sydney Morning Herald quoted Kupper as saying. “I think the world is burdened with about 200 trillion dollars’ worth of debt which is an amount of money that simply is not going to be paid back.”

On the other hand, Wesfarmers’ Goyder seemed to have optimistic views on Australia’s economy. He agreed there were some risks to bear but he indicated his joy on conducting business in Australia.
PwC CEO Luke Sayers said that the difficult business situations and the growing fiscal deficit will make 2016 a make or break year for Australian economy.

“Australia’s 24 years of uninterrupted economic growth is frequently highlighted, but we mustn’t forget the history of difficult reforms that made this record possible,” Sayers said in a statement. “If the next quarter-century is going to look anything like the last, it’s crucial that the lessons of the past are applied. In 2016 we need to see a shared vision and a long-term economic and fiscal plan that outlives the next election cycle.”

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