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CEOs predict an increase in revenue, profits and deals in 2024

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Αύξηση εσδδων, κ&epsilon ;ρδoν και συμφωνιoν το 2024 προβλeπου ν οι CEOs

CEOs are optimistic about their ability to achieve revenue and profitability growth in 2024 despite global economic conditions, according to latest Outlook EY CEO Outlook Pulse survey.

The EY quarterly survey that captures the views of 1,200 CEOsfrom 21 countries around the world, about the outlook, challenges and opportunities they face, shows that they are optimistic about their business performance despite the low-growth environment.

A significant majority of CEOs who surveyed expect increase in revenue(64%) and profitability (63%).

This optimism comes despite CEOs acknowledging the continuing challenges of the macroeconomic environment, with three-quarters (76%) of respondents expecting the global economy to continue at low or zero growth >. 78% of CEOs expect interest rates to remain “high for longer” due to continued inflationary pressures while more than half (57%) foresee rising business costs.

< h2 class="wp-block-heading">Recovery of deals in 2024

CEOs expect a rebound in deals, with eight in 10 (79%) respondents predicting an increase in megadeals over $10 billion. 36% of respondents are also actively pursuing M&E transactions in the next 12 months, while an additional 29% are pursuing divestments.

The US maintained its position as the most attractive target region for M&E activity, followed by Japan, the UK, China and India. Manufacturing emerges as the top sector for M&A deals, followed by banking and capital markets, insurance, consumer products and mobility in the top five.

This quarter, the survey also recorded the views of 300 heads of private equity (PE) firms in more than 20 countries on their investment outlookand portfolio management. As in the case of CEOs, the majority of PE firm heads surveyed (71%) also foresee an increase in large deals. 70% of PE firm leaders surveyed predict an increase in divestments in 2024, reflecting a more buoyant deal market than last year.

Transformation plans accelerate, with an emphasis on efficiency

CEOs' increased optimism is linked to their intention to focus on strategic transformation. 58% of respondents are accelerating business transformation plans – nearly triple the 21% of respondents in the July 2023 survey. Conversely, just 5% now report no transformation plans, compared to 37% in July 2023.

However, despite the optimistic mood, CEOs take a pragmatic approach to business transformation. Primary focus areas include performance improvements and cost management strategies. Specifically, 42% of CEOs and 45% of private equity firm heads surveyed prioritize effective working capital management. CEOs are also embracing technology as a means of enhancing efficiency, with 41% seeking to adopt artificial intelligence to increase efficiency and boost business performance.

Interestingly, while CEOs surveyed are turning to artificial intelligence to boost efficiency, three in four (76%) believe the technology will have little impact on revenue growth.

Geopolitical risks take center stage in a year of crucial election contests

With more than half of the world's population heading to the polls in the next 12 months, CEOs are keenly aware of the geopolitical risks and potential business implications. More than three-quarters of respondents (78%) are concerned that the potential rise of populist movements will intensify geopolitical uncertainty and create challenges for business. 76% of respondents are also concerned about the misuse of artificial intelligence in the important election polls of 2024.

While many CEOs feel confident in their organization's ability to integrate geopolitical turbulence into their decision-making, nearly half (48%) believe there is room for improvement in the processes they have in place to manage geopolitical risk strong>. According to the survey, 98% of CEOs and heads of private equity firms are driven to changes in their investment plans, including exiting certain activities (32% of CEOs and 38% of PE firms) or delaying a planned investment (42 % of CEO respondents and 32% of PE companies).

Ronald Attard, Country Managing Partner at EY Cyprus, stated that the conclusions of the global survey of CEOs agree with the forecasts for Cyprus for 2024, as well as the Cypriot economy showing resilience despite the challenges it faces.

The results present the global trends and priorities that are useful for the strategic planning of Cypriot businesses and their further development. At EY Cyprus we invest our efforts in the changes that are taking place and in creating a better working environment. This is our guiding principle in everything we do and we believe it is what drives transformation, inspires trust and supports talent and leadership.

For the full survey, click here: ey.com/CEOOutlook.

Source: www.philenews.com

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