Executives running the world’s leading companies share public
scepticism about the benefits of globalisation and doubt whether
breaking down barriers to trade has helped tackle climate change or inequality.
The annual health check of global boardrooms conducted by the consultancy firm PwC found the mood more upbeat than a year ago, despite the shockwaves caused in 2016 by the vote for Brexit and the victory of Donald Trump in the US presidential election.
But the survey, published to coincide with the World Economic Forum in Davos,
found that the bullishness about the benefits of globalisation had
diminished in the 19 years since PwC first polled executives at the end
of the 1990s.
Business leaders said they remained positive about the economic
benefits of free movement of goods, people and capital but questioned
whether globalisation had done anything to narrow the gap between rich
and poor or to stop global warming.
Trump’s arrival in the White House later this week has also raised
concerns about protectionism. Almost three fifths of those questioned
said they were worried about trade barriers going up, rising to 64% in
the US and Mexico.
Bob Moritz, PwC’s global chairman, said: “Despite a tumultuous 2016,
CEO confidence is moving back up – albeit slowly and still a long way
from the levels we saw back in 2007. But there are signs of optimism
right across the globe, including in the UK and US, where, despite
predictions of a Trump slump and a Brexit exit, CEOs’ confidence in
their company’s growth are up from 2016.”
Fears that global companies would shun Britain after the shock EU
referendum result were not supported by the PwC survey, which showed
more chief executives pinpointing the UK for investment than a year ago.
The survey fund that 89% of UK chief executives said they were
confident about their own company’s growth prospects in the year ahead,
up from 85% a year ago. Confidence about the prospect for revenue was
highest in India, followed by Brazil, Australia and the UK.
