2023-10-15 14:00:35
The majority of Spanish business leaders foresee a boost in the growth of their organizations in the next three years despite economic uncertainty, according to the ‘KPMG CEO Outlook 2023’ report, in which 1,325 CEOs from around the world belonging to companies with a turnover of more than 500 million dollars have participated, 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 growth in recent years could continue. In this way, inflation, high interest rates and 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 issues will have on their businesses, anticipating that their investments in these areas will generate returns within five years.”
86% of Spanish leaders are optimistic about the growth forecast of their companies compared to 77% of the results obtained globally. Furthermore, almost eight out of ten businesspeople (78%) foresee favorable progress in the Spanish economy and 74% trust in the development of the global economy over 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 raw material costs are placed 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 threat.
Protect the business
In relation to the challenges derived 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 increases in interest rates and the tightening of monetary policies could prolong a potential recession. . Both percentages are similar to those recorded 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% say 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 digitalization, artificial intelligence has gained great importance in the daily life of companies. For this reason, seven out of ten CEOs (70%), both in Spain and globally, make investment in this area a priority. The rise of these technologies brings with it a series of challenges that must be addressed. Among them, security and compliance stand out (68%), a percentage that doubles the overall result, ethical aspects 62%, exceeding the overall result by ten points, cost of this technology (60%) and a lack of regulation (56% ).
Furthermore, 74% of Spanish CEOs consider that artificial intelligence can help prevent cyberattacks but, at the same time, they think that it provides new ways to carry them out, compared to 82% globally. Likewise, 36% of Spanish businessmen consider that their company is not prepared for these possible cyberattacks, nine points above the global average.
Strategic priorities are constantly evolving, thus attracting and retaining talent is one of the main points. Nine out of ten surveyed in Spain affirm that they will increase their workforce and half will do so by 6%. Teleworking was a differential factor as a value proposition for the employee; 78% of Spanish CEOs, 14 points above the global average, predict that in three years they will work completely in the office.
Advancing ESG and diversity and inclusion
Another factor that determines the company’s ability to attract and retain the best talent is diversity, inclusion and equality in organizations. Therefore, 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% affirm that they have integrated ESG criteria into their business as a value lever. Furthermore, Spaniards are more optimistic than the rest of the countries about the profitability of investing in this area; 86% expect to obtain a significant return within five years, eight points above global results. However, almost seven in ten respondents (68%) consider that their company is not prepared to face greater scrutiny from interest groups and shareholders.
KPMG is a global organization of independent professional services firms offering audit, tax, legal, financial and business advisory services. KPMG is the brand under which the member firms of KPMG International Limited (“KPMG International”) operate and offer professional services. “KPMG” is used to refer to individual member firms within the KPMG organization or to one or more member firms collectively. The firm operates in 143 countries and territories with more than 265,000 professionals. Each member firm is a separate and independent legal entity, and each is described as such. KPMG International Limited is an English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.
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