2023-10-15 14:00:00
The majority of Spanish company leaders foresee a boost in the growth of their organizations in the next three years despite the economic uncertainty, according to the‘report ‘KPMG CEO Outlook 2023’, in which 1,325 CEOs from all over the world have participated belonging to companies with a turnover of more than 500 million dollars, 50 of them Spanish.
Juanjo Cano, president of KPMG in Spain has assured that “business leaders are confident in the good evolution of the economy and their companies in the medium term, although they are aware that some factors that have slowed down growth in recent years could be prolonged. In this way, inflation, high interest rates or operational risks continue to occupy a prominent place on corporate agendas and risk maps. Likewise, they trust in the positive impact that the incorporation of artificial intelligence and the integration of ESG matters will have on their businesses, anticipating that their investments in these areas will generate returns before five years”.
86% of Spanish leaders are optimistic about the growth forecast for their companies compared to 77% of the results obtained at a global level. In addition, almost eight out of ten entrepreneurs (78%) foresee a favorable progress of the Spanish economy and 74% trust in the development of the global economy during the next three years.
However, Spanish CEOs are aware that some factors that have limited their growth in recent years are likely to continue. Consequently, measures to mitigate the effects of inflation and the increase in the cost of raw materials are positioned as the main strategic priority for the next three years, while interest rates are considered the main risk for the growth of their companies in the medium term. In all the countries analyzed in this report, geopolitical risks and political uncertainty are the main threats.
Protect the business
In relation to the challenges arising from an economic context marked by inflation, restrictive monetary policies, as well as a complicated geopolitical context, Spanish CEOs consider that protecting the business against these threats is a strategic priority for the next three years. For 76%, the increase in the cost of living will negatively affect the growth of their company, while four out of five Spanish leaders (80%) consider that the rise in interest rates and the tightening of monetary policies could lead a potential recession. Both percentages are similar to those registered globally (77%).
On the other hand, 72% nationally and 71% globally would be willing to divest from a profitable business division if it damages their reputation. At the same time, 44% affirm that they are likely to carry out acquisitions that have a positive impact on the company, eight points less than the figure for the rest of the countries consulted.
Generative artificial intelligence
In terms of digitization, artificial intelligence has become very important in the day-to-day life of companies. For this reason, seven out of ten CEOs (70%), both in Spain and globally, mark investment in this area as a priority. The rise of these technologies brings with it a series of challenges that need to be addressed. Among them, stand out security and compliance (68%), a percentage that doubles the global result, ethical aspects 62% exceeding the global by ten points, cost of this technology (60%) and a lack of regulation (56 %).
In addition, 74% of Spanish CEOs consider that artificial intelligence can help prevent cyberattacks but, at the same time, think that it provides new ways to carry them out, compared to 82% globally. In the same way, 36% of Spanish employers consider that their company is not prepared against these possible cyberattacks, nine points above the global average.
Strategic priorities are constantly evolving, so attracting and retaining talent is one of the main points. Nine out of ten respondents in Spain say they will increase their workforce and half will do so by 6%. Teleworking was a differentiating factor as a value proposition to the employee, 78% of Spanish CEOs, 14 points above the global average, predict that in three years work will be done entirely in the office.
Advancing ESG and diversity and inclusion
Another factor that determines a company’s ability to attract and retain the best talent is diversity, inclusion and equality in organizations. For this reason, for more than half of those interviewed in Spain (54%), the pace has been too slow.
ESG issues constitute an indispensable element of the corporate and operational strategy of CEOs, thus 72% state that they have integrated ESG criteria into their business as a lever of value. In addition, the Spanish are more optimistic than the rest of the countries about the profitability of investing in this area, 86% expect to obtain a significant return before five years, eight points above the global results. However, almost seven out of ten respondents (68%) believe that their company is not prepared to face greater scrutiny from stakeholders and shareholders.
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