January 22, 2022

EY 2022 CEO Outlook Survey

EY 2022 CEO Outlook Survey

EY, a global professional service firm, has published its inaugural EY 2022 CEO Outlook Survey which presents the views of leading CEOs regarding their investment strategies and considerations.

Among the consideration of risks, the CEOs consider the increasing geopolitical tensions, trade conflicts, protectionism and sanction, as well as the acceleration of climate change impacts and increasing pressures to build sustainability the most critical to them, showing that they are more concerned about the external factors. At the same time, nearly 90% of them also see a significant increase in input prices, indicating another concern raised by the macroenvironment. However, there are nearly 80% of the CEOs agree that their investors are supportive of the investments, which could possibly adjust to the risks.

To deal with the potential impacts that the risks could bring, more than half pointed out that the geopolitical challenges have forced them to adjust strategic investment, and even more have at least planned to adjust their global operations or supply chains, showing that they are highly aware of the external risks. Also, they are spending the greatest portion on the core business rather than other business options, indicating that they are conservative with these current risks. To increase the profits, they would mainly use technology to replace higher-cost labor roles, improve scalability, and increase customer interactions. They also think that using data effectively and developing innovative delivery systems and channels would likely be the sources for their growth. As can be seen, the tech side would be the future for different industries in terms of expansion.

Overall speaking, global M&A, expected M&A, and global CVC deals are in rising trends. The global M&A volume has increased from 3419 to 5359 from 2019 to 2021, with the value increasing from $ 3441585 M to $ 5445279 M, and The expected active pursuit of M&A has reached the highest (59%) since 2013. The global CVC deals have also significantly increased more than double from 2020 to 2021. Therefore, these deals are generally still optimistic.

Different external risks exist and importantly is that CEOs are able to recognize them to take adoptable measures.

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