Davos - Global business confidence is plummeting and hopes for a quick economic recovery are fading according to a survey released at the start of the World Economic Forum Wednesday. The survey, the 12th performed by PricewaterhouseCoopers in conjunction with the forum's annual meeting, showed confidence among chief executive officers around the world to be at it lowest point since 2003.
Worldwide, only 21 per cent said they were confident of revenue growth in the next 12 months. Last year, 50 per cent expressed confidence. More than a quarter of respondents said they were pessimistic about prospects for the coming year.
Additionally, most executives said they expect any recovery to be gradual and extend over three years.
"The speed and intensity of the recession has rocked the psyches of CEOs and created a global crisis of confidence," said PricewaterhouseCoopers' Global CEO Samuel A. DiPiazza, Jr.
"CEOs are most concerned about the immediate survival of their companies. Even in once rapidly emerging economies, companies are now coping with issues like unavailable credit, sluggish capital markets, and collapsing demand."
Eighty-five per cent of respondents said they were concerned about the impact of recession on the world's major economies. Additionally, 70 per cent of CEOs said they expect to be impacted by the credit crisis; 80 per cent said they faced higher financing costs.
The survey also showed that a growing number of business executives expect joint ventures to play a larger role in the future, overtaking corporate mergers.
The negative sentiments of business executives have already been represented in expected attendance at the forum. Several executives who normally attend the meeting are not expected to attend, primarily because they have lost their jobs in the massive restructuring that has hit the world of finance in the last year.
The survey took in 1,124 interviews conducted in the fourth quarter of 2008 with executives in 50 countries.
