Polish CEOs’ confidence in global economy declines to 48%, KPMG survey reveals

The confidence of Polish CEOs in the development of the global economy over the next three years has dropped significantly, according to a new KPMG report. The latest edition of the KPMG CEO Outlook 2024 shows that only 48% of Polish business leaders are optimistic about global economic growth, down from 72% in 2023.

The survey, which included responses from top executives in Poland and around the world, also highlighted a shift in hiring plans. While all respondents expressed the intention to increase employment over the next three years, fewer than a quarter of Polish CEOs plan to grow their workforce by 6-10%, a decline of 16 percentage points compared to last year.

New technologies emerged as a top investment priority for Polish CEOs, with 72% of respondents focusing on this area, compared to 59% globally. However, the majority (88%) of Polish leaders believe that artificial intelligence (AI) will have a negative impact on their organizations in the coming years.

The report highlights growing challenges for CEOs, with nearly three-quarters of respondents feeling the pressure to ensure long-term success in a volatile business environment. Globally, executives are most concerned about supply chain disruptions, operational issues, and cybersecurity. In Poland, new technologies, political uncertainty, and cyber threats top the list of concerns.

“Leaders today need to be more resilient, flexible, and innovative than ever before,” said Bill Thomas, KPMG International President and CEO. “Those who adapt to the rapidly changing landscape, invest in relevant technologies, and foster talent will be best positioned for sustainable growth.”

The confidence gap between Polish CEOs and their global counterparts is striking. While just 48% of Polish executives are optimistic about global economic growth, confidence among leaders in 11 key global economies – including the U.S., China, and Germany – declined by only 1 percentage point, remaining relatively stable. However, Polish CEOs showed strong faith in their domestic market, with 92% expecting improvements in Poland’s economy.

To address challenges, Polish CEOs are focusing on building resilience to rising capital costs and inflation. This operational priority has seen a surge, with 52% of leaders highlighting it, up from just 8% last year. Additionally, half of respondents are looking to grow through mergers and acquisitions, while fewer than a quarter aim to achieve organic growth.

Despite the emphasis on new technologies, there is a divergence in attitudes toward AI. Globally, 64% of companies see generative AI as an investment priority, but only 48% of Polish leaders share that view, and 36% do not see AI playing a major role in their strategy. However, 92% of Polish CEOs believe AI will not reduce jobs but instead require employees to upgrade their skills.

Cybersecurity also remains a pressing concern, with 64% of Polish CEOs worried about cyber threats, although only 48% plan to increase investment in this area.

The report also touched on ESG (Environmental, Social, Governance) issues, revealing that 40% of Polish companies feel prepared to meet new ESG reporting standards, compared to 76% globally. Additionally, 28% of Polish businesses aim to achieve climate neutrality by 2030, compared to 52% in key economies.

A notable trend emerging from the survey is the shift back to in-office work. 84% of Polish CEOs plan to fully return to traditional office settings within three years, signaling a departure from the hybrid work model, which only 12% of Polish companies continue to embrace.

With an aging workforce and a shortage of qualified replacements, 68% of Polish leaders are committing to invest in local communities to ensure future access to skilled staff. In terms of leadership diversity, 68% of Polish CEOs agree that changes at the senior leadership level are essential to achieving diversity, equality, and inclusion (DEI) goals, closely aligning with global sentiment.

The KPMG survey was conducted in late July and August 2024, targeting CEOs from companies with annual revenues exceeding $500 million across 11 key sectors, including banking, energy, life sciences, and technology. In Poland, 25 CEOs participated, with their responses compared to those from 1,325 leaders in core economies such as the U.S., China, and Germany.

Source: KPMG and ISBnews