Reigniting the Stalled Global Economy
PwC MAP 2020 CEO Survey
The year 2020 is probably the most challenging year for business leaders across the world. With a global health crisis caused by COVID-19, business leaders had to make quick, yet careful decisions about their organizations, employees, customers, and other stakeholders.
In line with the theme of the 18th MAP CEO Conference, “A Whole New World: Reigniting the Stalled Global Economy”, we asked the CEOs about their views on how they plan to adjust and succeed in the changed business environment.
Fifty-seven percent of the CEOs we surveyed remain confident about their industry’s growth over the next 12 months. Similarly, the CEOs are optimistic about their company’s growth in the coming years. However, more CEOs are confident about their organizations’ longer term growth considering the period it will take for the economy to recover.
Majority of the CEOs also believe that it will take over two to three years for the Philippine economy to recover. According to most CEOs, infrastructure development, government spending, and domestic consumption will be the main key growth drivers of the country’s economy in the next 12 months. 2020 is a year that we will never forget.
We hope that this report will encourage leaders to look at this pandemic as an opportunity for us to create a new world, one that we will be proud to pass on to the next generation and not just restore the one we have before.
Majority of the CEOs believe that it will take over two to over three years for the Philippine economy to recover. The CEOs’ conservative view about our country’s economy is not surprising given that our real GDP contracted by 16.5% in the second quarter of 2020, bringing the country into recession. With almost 75% of the Philippine economy shut down during the ECQ, household consumption and private sector investment, the main economic drivers, slowed down in the past few months because of the business closures and loss of income. The combined fiscal and monetary policies as well as the COVID-19 healthcare responses, however, will help the Philippines bounce back, and once again be among the fastest growing economies in the world.
Running a business will not be the same because of COVID-19. Despite the ongoing concerns related to healthcare and safety as well as the global economic impact, the CEOs say that they are preparing their organizations to adjust to the new business environment. To succeed in the new world, organizations should review and revisit their plans in the following areas: crisis management and response, workforce, operations and supply chain, finance and liquidity, and strategy and brand.
Mary Jade T. Roxas-Divinagracia, CFA, CVA
Deals and Corporate Finance Managing Partner, PwC Philippines
Tel: +63 (2) 8845 2728
Deals and Corporate Finance Director, PwC Philippines
Tel: +63 (2) 8845 2728