PwC’s 7th Hungarian CEO Survey
Hungarian CEOs lean towards optimism
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For Hungarian companies, Germany remains the most important target for market growth, while Romania has climbed to second place in one year. CEOs are optimistic about the future, despite major challenges such as a labour shortage, changing workforce demographics, and an increasing tax burden on labour.
Insights in 1 minute
Global economic growth is a key driver
CEOs in both Hungary and worldwide are confident about their company’s prospects for revenue growth. In Hungary, expectations for the Hungarian economy remain positive, while the share of CEOs saying they are confident about global growth is up 8% (globally, the percentage of CEOs predicting improved growth doubled from last year).
Thoughts by Nick Kós
Germany is the most important foreign market
For Hungarian companies, Germany has traditionally been the most important target for market growth. Romania now ranks as the second most important country with regard to Hungarian companies’ local growth prospects. In addition to geographical proximity, the key drivers here are easier networking among the Hungarian minority, and a market twice the size of the Hungarian market.
In total, the percentage of companies looking to expand in China and Russia is the same (despite the Hungarian government’s incentives) as those targeting the Romanian market, which is only slightly higher than for the United States.
László Urbán about the attractive Hungarian markets
Global vs. local threats
Globally, the percentage of respondents citing either terrorism or climate change as the chief threat to their growth prospects increased by 20 percentage points compared to last year.
In Hungary, the availability of key skills, changing workforce demographics, and increasing tax burden on labour are the greatest challenges to chief executives, who seem much less troubled by global problems (geopolitical uncertainty, climate change, etc.).
See more disruptive trendsHungarian CEOs lean towards optimism
“Last year was tough for decision makers around the world. At the beginning of the year we saw mostly the risks, but now it looks like 2017 was about stabilisation in the world economy. The United States and China gained further strength, while Russia and Brazil slowly embarked on a path to economic recovery. Concerns over the future of the Eurozone in the wake of Brexit have also eased somewhat. While last year expectations were driven by risks, this year CEOs, both in Hungary and worldwide, are rightfully optimistic in their outlook for the global economy. I expect CEOs’ optimism to continue, as we look forward to a more peaceful and predictable year,” said Nick Kós, PwC Hungary’s Country Managing Partner.
Click here for the press release, the infovideo about the main findigs of the survey is on the right.
Quick facts from the survey
The most attractive market for Hungarian companies
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Germany is becoming even more attractive, as more Hungarian companies are looking to expand in the German market – in 2018, nearly half of all companies surveyed.
The most disruptive trend
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While in 2017 industry regulation and changes in customer behaviours were the least predictable factors, the majority of respondents now think that sudden changes in production technologies are the most disruptive.
Overall, how difficult is it for you to recruit for digital or skilled talent?
Female representation in PwC's global workforce
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digital talent
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skilled talent
201616%
201629%
201655%
Hungarian CEOs are facing labour and skills shortages: 59% found it difficult to hire staff with the right digital skills, and an even higher percentage reported that they had difficulties in recruiting for skilled talent.
About the survey
This is the seventh year PwC has conducted the Hungarian CEO Survey. Our survey is based on PwC’s Annual Global CEO Survey, which is now in its 21st year, and provides insight into Hungarian CEOs’ thoughts on challenges and opportunities for their companies, industries, and the general business environment. The survey was conducted in cooperation with the Confederation of Hungarian Employers and Industrialists (MGYOSZ).
