PwC: About 43% of Brazilian CEOs see their companies grow in 2019

Executives in Brazil have better expectations regarding the growth of their companies in the next 12 months. According to the 22nd Annual Global CEO Survey, about 43% of Brazilian leaders believe their companies should grow over 2019.  In the previous survey, which considered the feelings for 2018, that index was 39%. PwC is an affiliate of Aberje.

Furthermore, the global average of CEOs who expect to increase their companies’ revenues in the next 12 months is 35%. On the other hand, when asked about the expectation for the next three years, 48% of Brazilian CEOs believe that their companies should grow, compared to 54% in the previous survey.

Despite the economic slowdown in recent years, the survey shows that Brazil is still in the spotlight on the global scene: Brazil ranks sixth among the countries most cited by global CEOs as potential sources of investment throughout 2019, behind the USA, China, Germany, India, and the United Kingdom.

Among the main concerns of local CEOs for the coming year is the increase in the tax burden (mentioned by 96%), followed by over-regulation (93%). Political factors are also a matter for concern: uncertainties such as the national political scenarios were mentioned by 91%, while social instability represented 89% and populism another 85%. “The resumption of Brazilian economic growth shows signs of progress. The moment demands companies’ efforts to focus on disruptive processes that keep their organizations in the eyes of the world,” says Fernando Alves, PwC Brazil’s CEO.

Artificial Intelligence

Brazilian CEOs are first among those who say they should invest in artificial intelligence in the long term: 59% of respondents in the country responded that this trend will be present in their business over the next five years. We should take into account that the average of global CEOs that will use artificial intelligence was 40% in the same period, while the other regions were also lower compared to Brazil – Asia Pacific (39%), North America (41%), Latin America (46%), Western Europe (48%), the Middle East (49%) and Africa (52%).

Global Challenges

Overall, the greatest threat to companies is political uncertainty in the countries where they operate, a factor cited by 78% of CEOs, followed by geopolitical uncertainties (75%), over-regulation and instability in global growth (73%), trade conflicts (70%), protectionism (68%), exchange rate volatility (66%), and taxation growth in the countries of operation (62%).

The 22nd PwC Global Survey interviewed 1,378 CEOs in 91 countries, between September and October 2018.