Survey finds CEOs optimistic about economic recovery this year

According to PwC's 24th Annual Global CEO Survey, CEOs are voicing record levels of optimism in the global economic recovery, with 76% of global business leaders predicting that economic growth will improve in 2021. In South Africa, 57% of CEOs believe that the global economic recovery will improve in the next 12 months. Dion Shango, CEO at PwC Africa, joined CNBC Africa to discuss the findings from the survey. Shango highlighted that the optimism among business leaders stems from the progress made in vaccine development and rollout in first world countries. After the unprecedented shock of 2020, characterized by the global economy contracting by 3.5% and the South African economy by 7%, there is a strong expectation for a rebound in economic activity. While African CEOs are slightly less optimistic compared to their global peers, the 57% optimism rate still represents a record high for South Africa. Top concerns for South African CEOs include unemployment, basic infrastructure inadequacies such as electricity challenges, and the overall impact of the pandemic and other health crises. In response to the grim employment outlook presented in the survey, Shango emphasized the need for a new social compact between business, government, and civil society to address the challenges faced by the country. He highlighted the importance of upskilling the youth and providing them with the necessary tools to thrive in a digital economy. Despite the high level of optimism, a significant portion of South African CEOs have indicated a reduction in hiring over the next 12 months and a decrease in headcount in the past year. Investments are expected to focus on operational efficiencies and digital capabilities rather than increasing employment. The survey findings reflect a cautious optimism among CEOs in South Africa, with a recognition of the challenges ahead while maintaining a hopeful outlook for economic recovery.