Confidence dented by volatility

The annual PwC Global CEO Survey asked chief executives to discuss the challenges and opportunities they face. Photo / Thinkstock

Global political uncertainty and oil price volatility have seen the confidence of Kiwi chief executives take a hit this year, but they are still more optimistic than their counterparts in Australia or the US, a survey shows.

The annual PwC Global CEO Survey asked chief executives to discuss the challenges and opportunities they face.

PwC New Zealand chief executive Bruce Hassall said results from the 62 New Zealand chief executives surveyed showed 47 per cent thought the global economy would improve this year, down from 63 per cent last year, but more than the 38 per cent in Australia and 29 per cent in the US.

The drop was partly attributed to global political uncertainty and oil price volatility, but the fall in dairy prices was also a contributing factor.

"What we found is that rapid change in the marketplace is presenting just as many opportunities as risks, particularly in the technology space," Hassall said. "That's why there's an underlying sense of optimism for many CEOs, but a similar proportion also see more threats than there were three years ago.

"There are now 14,000 New Zealand businesses growing internationally, so the economic tides ... are affecting us more than ever."

ANZ New Zealand chief executive David Hisco said: "If you want to grow, you soon run out of room in New Zealand. You have to get offshore if you want a decent business."

The survey also found that technology was seen as one of the most important future areas to focus on.

CEO survey
• 88% confident about their firm's growth prospects this year.
• 84% concerned about the availability of key skills.
• 76% say changes in consumer behaviour will be disruptive for their industries.
• 47% believe the global economy will improve this year.