This year, Russia joined the top-10 most preferred countries (placing sixth). Global business leaders note that Russia is a country with some of the best opportunities for business growth in the coming year. One third of global CEOs (31%) have plans to invest in production in Russia.
CEOs of Russian companies are generally more optimistic than their foreign counterparts: 48% of Russian CEOs are completely confident that their companies would post growth for 2012.
These results were featured in PwC's15th Annual Global CEO survey which was presented at the World Economic Forum in Davos.
According to the survey, CEOs were more confident about the chances for their companies posting growth in the next 12 months in comparison with global economic forecasts. Therefore, they are of the belief that they have adequately dealt with difficult and unstable economic times.
A total of 40% of the global business leaders surveyed stated that they are completely confident that their companies would post growth in the next 12 months. In addition, 48% of the leaders surveyed expressed full confidence that the Russian economy would post growth in the next 12 months. This is under last year's result (60%), but nonetheless it is higher than this year's global result (40%).
Out of almost half of the 1,258 respondents surveyed in different countries, as well as 52% of Russian CEOs, expressed the belief that the world economy would go into downturn in the next 12 months. Only 15% of global business leaders stated that they believed the global economy would improve in 2012. Furthermore, the economic forecasts of Russian CEOs were even less optimistic, with only 4% of those surveyed expecting improvement.
With respect to long-term development, 47% of global business leaders were entirely confident that their companies would post growth in the next three years. In addition, 52% of CEOs of top Russian companies and 53% of CEOs of companies in BRIC countries were entirely confident about their companies' prospects for growth. Business leaders in Europe were even less optimistic: 38% of CEOs in Western Europe and 42% of their counterparts in Central and Eastern Europe were confident with respect to long-term growth. According to the business leaders surveyed, quickly emerging markets are still a very important source of growth. For instance, 59% of global business leaders and 63% of Russian CEOs agreed that quickly emerging markets are more important for the future of their companies than countries with already developed economies. Almost half of the CEOs from developed markets stated that quickly emerging markets are the most important factor for the future of their companies. The key markets for growth include the BRIC countries (Brazil, Russia, India, and China), as well as the US and Germany.
According to 30% of the leading global CEOs, the best strategic opportunities for growth next year will appear thanks to expansion of existing markets shares, as well as the unveiling of new products and services, which was noted by almost one third of those surveyed (28%). In Russia, only 21% of CEOs surveyed see strategic opportunities for expanding current market shares while 34% of business leaders believe that growth in the coming year will would be ensured the launch of new products and services. In addition, 18% of global business leaders and 4% of Russian CEOs have started focussing on new markets as part of their growth strategies while 10% of global leaders and around 31% of Russian CEOs are more oriented towards creating joint ventures and strategic alliances.