Canadian CEOs not as gloomy about debt crisis: survey

According to the latest data, 38% of the Canadian chief executives polled said global turmoil such as the European sovereign debt crisis has had an impact on their operations, compared with 56% across the globe. Canadian executives also were more positive in their responses about other global events, including last year’s Japanese earthquake and the subsequent nuclear crisis and the political upheaval in Arab countries.

The survey found Canadians were also confident about their companies’ revenue growth during the next 12 months, although optimism was down from last year. Almost half of Canadian chief executives said they were “very confident,” while only 40% of their global peers offered the same enthusiastic response.

“In general, CEOs in Canada believe their companies have greater resilience and growth prospects than their global peers,” said Gino Scapillati, PwC’s national managing partner, markets.

Most of this positive Canadian sentiment can be attributed to mergers and acquisitions, which were seen as the best strategic opportunity for growth. New product or service development also buoyed spirits in the executive ranks. Global leaders, on the other hand, saw increasing market share in existing markets as the best way to grow.

Despite general optimism, Canadians have their worries. Sixty-six per cent said they were concerned about uncertain or volatile economic growth, with more than half also worried about debt burden, government responses to fiscal deficits, instability in capital markets and exchange-rate volatility.
As well, 48% expect the global economy to decline over the next 12 months, and only 13% believe it will improve.

To combat their fears, 66% of Canadian chief executives plan to change their business strategy and operations in the next year.

“Canadian CEOS may be in a better position to adjust their business strategy and operations to face whatever comes their way because of greater economic stability compared to many of their counterparts around the world,” said Mr. Scapillati.

PwC surveyed 1,258 business leaders from 60 countries, including 130 in Canada, in the last quarter of 2011. Global CEOs were asked to provide their outlook on the economy, and to answer how they expect to deliver business results in this environment.