Submit RFP

      < Back to KPMG Asia Pacific CEO Outlook 2025

      To understand how the current business climate is shaping CEOs’ thinking, KPMG embarked on the 11th edition of its annual Global CEO Outlook, which features 1,350 CEOs from some of the world’s biggest economies and key industries, of which 400 respondents are from Asia Pacific. The survey is a wide-ranging study that seeks to cut to the core of CEO sentiment regarding the global economy, emerging technological innovations, talent management and the sustainability agenda.

      This article looks at Asia Pacific CEOs’ outlook for domestic and global economic growth, and how they expect their companies and industries to perform.

      Confidence in country’s growth contrasts with the global economic outlook

      In 2025, Asia Pacific CEOs are reporting much more optimism about the growth prospects of their own economies (82 percent) over the next three years, while confidence in global economic prospects continues to decline. In 2023, 73 percent of leaders were optimistic — today, it’s down to 64 percent. Globally, only 68 percent of CEOs remain upbeat, the lowest level we’ve seen in four years.

      As a contrast, the optimism about their own country’s prospects is greatest in Australia (90 percent) and lowest in India (71 percent). This isn’t surprising, given muted investment appetite and capital expenditure continue to be concerns in the Indian economy. 

      The declining confidence in the global landscape also reflects ongoing uncertainty and volatility that has plagued the global markets, stemming from an evolving geopolitical landscape, persistent supply chain constraints and intensifying scrutiny on sustainability.

      Furthermore, about 80 percent of Asia Pacific CEOs also see substantial growth opportunities for their organizations and industries, in line with the global average. In fact, in 2025, executives appear more certain that their companies are on an upward trajectory compared to the previous year: 61 percent of respondents expect earnings to increase by more than 2.5 percent this year, compared to just 52 percent in 2024. CEOs in Japan (76 percent) are particularly optimistic about their earnings outlook compared to global and regional peers, reflecting its solid domestic demand and stable GDP performance.1

      Exhibit 1: Executives remain bullish on company growth prospects

      This positivity is driving many to continue investing in their businesses, with executives noting that there is strong appetite for increased hiring (92 percent) and mergers and acquisitions (87 percent) over the next three years, and a substantial number (82 percent) of Asia Pacific CEOs expecting to spend more than 10 percent of their budgets on AI in the next 12 months. This clearly indicates that subdued global outlook has not dampened optimism around companies’ prospects in Asia Pacific.

      Exhibit 2: Fewer Asia Pacific CEOs are confident about global growth prospects than last year

      Confidence in the growth prospects of the global economy is lowest among Chinese companies (58 percent). This likely reflects, in part, the impacts of an uncertain tariff environment.2 Strained relations with its main export partner and uncertainty around global demand are likely some areas of concern among firms in China. Earlier in April 2025, the International Monetary Fund (IMF) projected that global growth is expected to decline as economic headwinds intensify.3

      Managing risks with emerging technologies

      Last year, global trade risks were top of mind for Asia Pacific CEOs, especially as geopolitical tensions and trade realignments dominated headlines. These trends have persisted through 2025, with supply chain resilience remaining a top three driver of organizational decision-making in the short term.

      However, the landscape is shifting with the arrival of emerging technologies like generative AI. According to KPMG’s Asia Pacific CEO Outlook 2025, AI integration is the top issue driving Asia Pacific executives’ short-term decision-making, a notable contrast with global peers who are more focused on cybersecurity issues and supply chain resilience.

      Sector snapshot

      Though technological disruption is spreading across every industry, the KPMG Asia Pacific CEO Outlook 2025 reveals that this is a major issue for the region’s automotive sector. More than half of executives in this sector consider technological disruptions (57 percent) to be the most disruptive factor in the next three years, followed by operational and financial challenges (40 percent). That makes sense considering the growing role of electrification, software and connectivity for modern-day mobility and the rapidly expanding electric vehicle market in Asia Pacific.4

      To address these mounting risks, Asia Pacific CEOs are boosting investments in a range of areas, most notably cybersecurity and digital risks resilience, and regulatory compliance and reporting — key capabilities they need to meet the region’s evolving regulatory landscape. Meanwhile, almost a third of executives in the region are working to integrate AI into their workflows (30 percent) to mitigate risks over the next three years, matching the sentiments of global peers.

      Exhibit 3: Asia Pacific CEOs bet on security, compliance and AI to address risks

      CEOs remain steadfast in their belief that the key to organizational growth lies in advancing digitization and connectivity across the business. In 2024, 17 percent of CEOs were focused on expanding digitization; over time, this sentiment has deepened (19 percent in 2025), while other technological priorities such as generative/agentic AI (13 percent) have also grown in importance and at higher rates than global peers.

      Exhibit 4: Digitization and connectivity remain top operational priorities in Asia Pacific 

      Asia Pacific CEOs are feeling upbeat about their own backyards. Yet, despite optimism at home, global uncertainty isn’t going anywhere, with geopolitics, supply chain pressures, and sustainability scrutiny still shaping the landscape.

      Brendan Rynne

      Chief Economist

      KPMG Australia

      1 OECD, “OECD Economic Outlook, Volume 2025 Issue 1” (June 2025).

      2 World Bank Group, “Unlocking Consumption to Sustain Growth in China – World Bank Economic Update” (June 2025).

      3 IMF, “The Global Economy Enters a New Era” (April 2025).

      4 IEA, “Trends in electric car markets” (2025).