This is how CEOs would mitigate the effects of the crisis, according to the PwC survey

By: STA Date: 2023. 02. 08. 11:00

The majority of Hungarian business leaders expect a clear slowdown in the growth of the world and Hungarian economies in 2023, however, they feel that the situation of the domestic economy is more fragile than the global one. 85% of them expect a slowdown in GDP growth at home, according to the PwC Hungary CEO Survey.

(Photo: STA)

The biggest threat to economic growth is considered to be the energy crisis, followed by inflation and macroeconomic volatility. In line with fears, an inflation rate of 15% and a euro exchange rate of HUF 421 are predicted for this year. Despite the pessimistic outlook, top executives do not plan to cut staff or reduce compensation, but instead see cutting operating costs and raising prices as possible solutions to address the challenges.

The war in Ukraine, which according to 86% of respondents, could end in 2024

Growing concern over geopolitical conflicts in other parts of the world has forced CEOs to rethink aspects of their business models. To mitigate the impact of geopolitical risks, leaders are primarily committed to entering new markets, investing in cybersecurity and/or data protection, and modifying supply chains.

As a response to recession fears, the majority of Hungarian managers consider reducing operating costs and increasing the price of products and services to be the solution.

The vast majority of them (78% and 97%) do not plan to cut staff and reduce remuneration, which is even higher than the proportion measured among CEOs worldwide. Only one fifth of the companies are considering downsizing – 9% have already done so and another 11% are preparing to do so. In the meantime, managers see the future development of the wave of resignations mostly unchanged, 20% of them expect further growth in this area.

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