The nation’s leading executives have expressed a cautious sense of optimism regarding an economic recovery, despite ongoing concerns over the global economic landscape. The latest annual chief executive survey conducted by PricewaterhouseCoopers (PwC) revealed that 59 percent of respondents anticipated domestic economic growth in the coming year, marking a slight improvement from the previous year’s outlook. However, confidence in revenue prospects remained moderate, with just under 40 percent of chief executives indicating they were “very or extremely confident” about their company’s financial performance in the near future. PwC New Zealand’s Chief Executive, Andrew Holmes, identified global economic conditions as the primary concern for business leaders, followed by risks associated with cybersecurity and technological disruptions.
Holmes emphasized that various international factors outside New Zealand’s control continued to shape the economic environment. He pointed to geopolitical tensions, including the conflicts in Ukraine and the Middle East, as significant influences on global economic stability. He also highlighted the recent discussions surrounding the introduction of tariffs on international trade as another critical factor impacting economic expectations.
The precise implications of these tariffs on New Zealand’s economy remain uncertain. However, Holmes acknowledged that such developments could have far-reaching consequences, affecting trade and economic stability. Despite these concerns, the report indicated a positive shift in inflation-related anxieties. The declining concern about inflation suggested that economic policies were on the right track, fostering confidence in the stability of financial conditions. Holmes noted that lower inflation levels provided a solid foundation for economic growth, allowing businesses to plan and invest with greater certainty. This stability was considered an essential component in supporting long-term business expansion and fostering a resilient economic environment.
Nevertheless, long-term business viability remains a critical issue for many organizations. The survey revealed that nearly a quarter of New Zealand CEOs believed their companies might not remain financially sustainable over the next decade if they continued on their current trajectory. This concern was even more pronounced in the Asia-Pacific region, where 45 percent of executives expressed similar apprehensions about their long-term sustainability. Holmes, however, viewed this challenge as an opportunity. He suggested that as the world becomes increasingly reliant on technology, New Zealand’s geographic isolation could become less of a disadvantage. The evolving digital landscape presents businesses with new ways to engage in global markets, potentially reducing traditional barriers associated with distance and access.
Climate action also featured prominently in the report, with more than three-quarters of New Zealand executives stating they had undertaken climate-related investments. However, this figure was lower compared to their counterparts in the broader Asia-Pacific region. Cost-related challenges were identified as a primary factor limiting further investment in sustainable initiatives. New Zealand executives frequently cited rising costs as a significant hurdle to implementing climate-related strategies, a concern echoed by business leaders worldwide.
The survey further underscored the growing role of artificial intelligence (AI) in business operations. A majority of CEOs indicated a willingness to integrate AI into their core business processes, reflecting a broader shift towards digital transformation. Trust in AI technologies was a recurring theme, with executives acknowledging its potential to enhance efficiency and drive innovation across various sectors. The PwC report gathered insights from 4,710 chief executives across 109 countries and territories during the period from October 1 to November 8. The survey included responses from 101 New Zealand executives, providing a comprehensive perspective on the nation’s business outlook.
In summary, while concerns over global economic conditions, technological disruptions, and sustainability challenges persist, New Zealand’s business leaders remain cautiously optimistic. The evolving economic landscape, coupled with advances in technology and strategic investments, presents both challenges and opportunities for long-term growth and stability.
