A mere 32% of CEOs in Cyprus foresee an increase in their company’s revenue within the next 12 months, while 75% are more optimistic for the next three years, a PwC Global CEO Survey shows.
This comes in sharp contrast with the replies given by CEOs in the eurozone and globally, who are optimistic about their revenue prospects in the next year by 71% and 85% respectively.
According to the survey, 29% of participants consider innovation through the creation of new products and services as the main opportunity for an increase in revenue. Growing their share of the market (23%) and expanding to new geographical areas (23%) follow.
Replies to questions regarding financial and political threats to businesses in Cyprus, were focused on the public sector successfully dealing with public deficit and debt (83%), the possibility of increased taxation (77%) and capital markets instability (70%).
At the same time CEOs in Cyprus consider that bribery and corruption constitute serious threats to their businesses (66%), followed by concerns over energy costs (63%) and changes in consumer spending and behaviour (63%).
Despite the fact that participants in the survey feel that cost reduction is important, a 60% considers that jobs will remain in the same levels over the next 12 months, double those who thought that in 2012 (31%).
CEOs who foresess that they will reduce their staff has dropped to 23%, compared to 50% in 2012.
At the same time 40% of participants said they see a positive change in their client relationship.
A total of 57%, however, believe that confidence as regards investors and creditors, the state and regulators has deteriorated.
The overwhelming majority of CEOs in Cyprus or 93% think that the state should first safeguard the financial sector’s stability and access to funding, followed by creating an international and more competitive taxation system (47%) in order to attract investments and new capital.
The survey was conducted in Cyprus among 70 CEOs.