CEO predictions on business growth

Friday, November 27, 2015

By Cassandra Oaten

This month more than 1,300 business delegates met in Manila, the Philippines to attend the APEC CEO Summit, networking with other business leaders with international ambitions, and hearing from national leaders of the APEC region on their thoughts of the regional economic climate.

The timing of the Summit coincided with the release of PricewaterhouseCoopers’ 2015 APEC CEO Survey, a detailed report collating the expectations, insights and analysis of the levels of confidence of 800 business leaders operating in the Asia-Pacific region.

Unfortunately this year’s report showed a drop in confidence and predicted revenue growth from trading across the region, it was in fact the lowest predicted level since 2012, which highlighted the extent to which indicators of a slowdown and economic rebalancing in China and other market signals are influencing the business environment across the APEC region.

Although some economies may be slowing, large social trends such as urbanisation and a growing middle class in emerging economies will still drive demand. It is expected that service providers will continue to see growing markets in high quality goods and services as they position themselves to respond to this need. The report shared that the demand fuelled from the service sectors of IT design and advancement, logistics and risk reduction will be the sector growing the fastest.

The APEC Business Advisory Council (ABAC), the business group that reports to leaders on their recommendations to promote economic growth have also highlighted the opportunities they see for growth. This group has a focus on promoting the connectivity and capacity of small, medium and micro sized enterprises (SMMEs) in global value chains. Connectivity, be it digital or in tangible supply chains will also fuel growth as small enterprises grow larger and employ more staff, and in toe utilise and outsource more supportive services to facilitate their growth.

The executive summary of the report can be accessed here.