New Zealand CEOs more optimistic about economic prospects than global counterparts

According to new research from KPMG New Zealand, New Zealand CEOs are more confident in their growth prospects and the resilience of their industries in the face of global economic uncertainty than international peers. 

Of the New Zealand CEOs surveyed:

• 53% are very confident in their industry’s resilience over the next six months, compared to 26% globally.
• 43% strongly agreed that the ability to retain talent given inflationary pressures and the rising cost of living will have an impact on their organisation in the next three years, versus 21% of global CEOs.
• 87% say major global social and environmental challenges, such as income inequality and climate change, are a threat to their company’s long-term growth and value.
• 80% currently consider their digital investment strategy to be aggressive, aiming to secure first-mover or fast-follower status.
• 73% strongly believe that getting their employees to adopt and sustain new ways of working is a significant challenge.

The CEO Outlook survey collated the views of New Zealand business leaders in a cross-section of the country’s key industries around the topics of economic outlook; talent; technology; and environmental, social and governance (ESG).

The report shows that 53% of New Zealand CEOs are very confident in their industry’s resilience over the next six months, compared to 26% globally. Chief Executive Godfrey Boyce says this reflects the strong demand for goods and service, and highlights; “Unlike most of the world, New Zealand has only recently emerged from Covid-19 restrictions and opened our borders. Industries that have been dormant – tourism, hospitality, international education – are expected to see a direct boost.”  

Immigration and talent also highlighted a divergence in New Zealand leaders’ priorities compared with the global average. 43% of New Zealand CEOs strongly agreed that the ability to retain talent given inflationary pressures and the rising cost of living will have an impact on their organisation in the next three years, versus 21% of global CEOs.

The survey also revealed that New Zealand CEOs appear to feel obstacles to digital transformation more acutely than international CEOs. Getting employees to adopt and sustain new ways of working is a significant challenge to implementing digital transformation strategies. Despite difficulties in implementation, 80% of New Zealand CEOs currently consider their digital investment strategy to be aggressive, aiming to secure first-mover or fast-follower status.

Simon Wilkins, Head of KPMG IMPACT in New Zealand, says, “The vast majority (87%) of Kiwi CEOs say major global social and environmental challenges, such as income inequality and climate change, are a threat to their company’s long-term growth and value. Yet they are struggling with telling their ESG story and demonstrating impact. New Zealand’s organisations should be focused on fully integrating ESG into core operations and increasing capability around identifying, measuring, and analysing the right data to demonstrate their ESG progress with confidence.”

The KPMG CEO Outlook survey conducted research with 1,325 CEOS between July 12 and August 24 and provides unique insight into the mindset, strategies and planning tactics of CEOs. The survey included leaders from New Zealand as well as Australia, Canada, China, France, Germany, India, Italy, Japan, Spain, UK and US.