- Almost 50% of CEOs have positive expectations of business conditions for 2023
- Inflation and cost of credit are among their main concerns
High-level executives in emerging markets worldwide are adopting a cautious, back-to-basics approach towards growth and expansion in 2023, while making the bottom line their priority, amid geopolitical uncertainty and tight financial conditions, according to the latest Global CEO Survey carried out by the global research and advisory company Oxford Business Group (OBG).
Titled “Future Focused: What CEOs see on the Horizon for Emerging Markets in 2023”, the survey gauges the views of more than 200 executives from Africa, Asia, the Gulf, Latin America and the Caribbean on their near-term expectations for business.
OBG’s first Global CEO Survey since 2019 is accompanied by an in-depth analysis of the findings, together with an introductory viewpoint by Oliver Cornock, the Group’s Editor-in-Chief. In addition, OBG’s Regional Editors comment in detail on the results for the markets they oversee.
Almost half of executives surveyed said they expected business conditions in their market to improve in 2023, with commodity price fluctuations cited as the biggest challenge faced, followed by exchange rate volatility and supply chain disruption.
Business leaders were also asked about their forecasts for revenue from in-country operations and the factors they thought risked negatively affecting corporate performance. In answer to these questions, 40% of respondents told OBG they anticipated revenue growth in the coming months, while a further 30% expected business to remain steady. Inflation gave respondents the greatest cause for concern, followed by the availability and cost of credit.
Other topical issues featured in the survey include a question on environmental, social and governance (ESG) principles. When executives were asked what single factor had influenced ESG commitments the most, responses were mixed, with an equal percentage (17%) citing regulatory requirements and corporate image and reputation.
Cornock said the results confirmed that while recovery from the Covid-19 pandemic had produced significant growth and heightened economic activity in many of the markets OBG covers, external factors, including inflationary pressure, high exposure to both commodity markets and the US dollar, as well as geopolitical uncertainty had combined to make caution the current watchword for many business leaders.
“There are nonetheless strong indicators that CEOs are prioritising the bottom line, focusing on growth through balancing the books, and understanding prevailing macroeconomic risks and the global geopolitical backdrop,” he said. “OBG’s Yellow Slice countries are characterised by strong economic fundamentals, as well as youthful populations of early adopters. Harnessing these strengths, alongside the back-to-basics approach to business, looks to be the order of the day.”
About OBG CEO Surveys:
OBG began producing its CEO Surveys in 2016 as a way of giving licence-holders a handle on business sentiment in the economies it covers, termed the Yellow Slice markets, in reference to its corporate colour. Since then, they have become a highly popular and integral part of the firm’s portfolio of research tools.
The OBG CEO Surveys feature in the Group’s extensive portfolio of research tools. The full results of the surveys are available online and in print. Similar studies are also under way in the many markets in which OBG operates.
This survey has been designed to assess business sentiment among business leaders (Chief Executives or equivalent) and their outlook for the next 12 months. Unlike many surveys, the OBG CEO Survey is conducted by OBG staff across the full range of industries, company sizes and functional specialties. The results are anonymous.
This Global CEO Survey was conducted in late 2022 and is based on 224 responses from CEOs based in the following regions:
- 33% were in the Gulf
- 31.7% were in Africa
- 21.9% were in Latin America and the Caribbean
- 13.4% were in Asia
The data generated allows for analysis of sentiment within an individual country, as well as regionally and globally. Additionally, comparisons can be drawn between both countries and regionally.
The results are presented statistically within infographics and discussed in articles written by OBG Managing Editors.
OBG provides this survey, infographics and accompanying analysis from sources believed to be reliable, for information purposes only. OBG accepts no responsibility for any loss, financial or otherwise, sustained by any person or organisation using it.
For further information on the content of the survey, please contact: Oliver Cornock, Editor-in-Chief, at email@example.com. Should you wish to reproduce any element of this survey, infographics and accompanying analysis, please contact mdeblois@ oxfordbusinessgroup.com.
Any unauthorised reproduction will be considered an infringement of the Copyright. For further details about OBG and how to subscribe to our widely acclaimed business intelligence publication, please visit http://www.oxfordbusinessgroup.com.
About Oxford Business Group:
Oxford Business Group (OBG) is a global research and advisory company with a presence in over 30 countries, spanning the Middle East, Africa, Asia and the Americas. It is recognised internationally as a distinctive and respected provider of on-the-ground intelligence on world’s fastest-growing markets, termed The Yellow Slice, in reference to OBG’s corporate colour.
Through its range of products – Economic News and Views; OBG CEO Surveys; OBG Events and Conferences; Global Platform, which hosts exclusive video interviews; and The Report publications – as well as its Advisory division, OBG offers comprehensive and accurate analysis of macroeconomic and sector-level developments for sound investment opportunities and business decisions.
OBG provides business intelligence to its subscribers through multiple platforms, including its direct 6 million verified subscribers, Dow Jones Factiva subscribers, the Bloomberg Professional Services subscribers, Refinitiv’s (previously Thomson Reuters) Eikon subscribers and more.