Mounting uncertainties are pressuring CEOs’ confidence. But businesses are not entirely on the defensive. Trends that support long-term investments in key markets remain firmly in place. Half of CEOs based in developed markets believe that emerging economies are more important to their company’s future, as do 68% of CEOs who are themselves based in emerging markets.

CEOs are committed to expanding local customer bases in their priority markets. But rather than simply exporting products, they're building diverse local operations, from services capabilities to manufacturing capacity. Critically, they're changing their product mix – and sometimes their entire operating models – to meet very local needs and conditions.

Skills shortages are having a real impact on growth. One in four CEOs said they’ve had to cancel or delay a strategic initiative because of talent constraints. Rising compensation is one factor, but for more CEOs, there is simply a deficit of qualified candidates at a time when more CEOs expect to expand their workforces than to reduce.

The innovation priority remains: Almost a third of CEOs believe that their biggest opportunities for growth lie in developing new products and services. CEOs in the communications, and media and entertainment sectors are the most active on all fronts, whether it means refocusing innovation efforts for existing products and services or for entirely new products in new models.