The past year has been particularly challenging for businesses and the cost reduction initiatives, which are expected to continue, confirm the year ahead will be even more challenging. However, uncertainty is the only certain characteristic of today's business environment and successful organisations are pursuing resilience to survive and grow.
Confidence in growth
According to the 16th Annual Global CEO Survey, the majority (34%) of CEOs in Cyprus, in the Eurozone (43%) and globally (45%) are somewhat confident about their company’s prospects for revenue growth over the next 12 months.
CEOs in Cyprus are more optimistic about their company's revenue growth prospects for the next three years. The percentage of CEOs who stated “very confident” reaches 25%, an increase of 22 percentage points compared to the percentage recorded last year. A total of 69% stated “somewhat confident” representing an increase of 40 percentage points. In contrast, the percentage of Cypriot CEOs who are “not confident at all” drops to 3% compared to 45% recorded last year.
Potential opportunities and investment priorities
CEOs in Cyprus view organic growth in the domestic market (25%) and the development of new products or services (25%) as the main opportunities for growth over the next 12 months followed by new operations in foreign markets (22%), organic growth in existing foreign markets (16%) and a new M&A, joint venture and strategic alliance (13%).
Pressures and threats
Uncertain economic growth and the government’s response to fiscal deficit and debt burden may have a negative impact in business activity. This is confirmed by 91% of Cypriot CEOs, 86% of CEOs in the Eurozone and 81% of CEOs at a global level.