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CEOs in the Middle East region are more negative about the macroeconomic outlook for 2023 than their European and American counterparts, with more saying they believe it will worsen over the first half of the year.
In a survey by CEO advisory firm Teneo, 11% of CEOs in the Middle East and North Africa (MENA) region think that the outlook for the global and domestic economies, access to capital, industry conditions and customer demand will worsen a lot. A further 44% think the outlook will worsen a little.
But, in the Americas, 32% think there will be a lot of improvement, while 3% think it will worsen a lot, and 12% think it will worsen a little.
In Europe, 3% expect a lot of improvement, compared with 17% who think it will worsen a lot and 56% who think it will worsen a little.
“The level of complexity and uncertainty facing CEOs around the world is at unprecedented levels,” said Paul Keary, CEO of Teneo.
“The sheer magnitude of macro issues places a premium on companies taking steps to control their fate amid an increasingly deglobalised world. These dynamics will create opportunities for companies who are nimble and decisive.”
CEOs globally showed a trend towards balancing environmental, social and corporate governance needs with core business, with the majority saying that would be their focus.
The trend is strongest in the MENA and Asia regions, where 80% said they will strike a balance, versus 20% prioritising core business.
In the Americas, 14% said they will prioritise ESG, 67% said they will strike a balance and 25% said they will prioritise core business. In Europe, 17% said they will prioritise ESG, 59% said they will strike a balance and 17% said they will prioritise the core business.
CEOs in the Asia and MENA regions said they are preparing for further disruption in capital markets, technology and geopolitics next year.
In the Americas, more disruption is expected in supply chain, capital markets and technology, while in Europe, disruption is expected in ESG, geopolitics and society.
(Reporting by Imogen Lillywhite; editing by Cleofe Maceda)
