Hungarian CEOs More Confident Than a Year Ago

54% of CEOs in Hungary are confident that the global economy will grow faster in 2024, while 60% are confident that the domestic economy will improve, after last year's record pessimistic year, according to the 13th edition of PwC's CEO survey in Hungary.

The survey of 297 Hungarian CEOs found that 22-22% expect a slowdown in both global and Hungarian business activity, compared to 76% and 85% respectively last year, PwC Hungary's CEO Tamás Lőcsei said at a press conference in Budapest on Thursday.

He also highlighted that for the first time in the survey's history, Hungarian CEOs are more optimistic about economic growth than about their own earnings. The proportion of those who expect their company's revenues to grow in the next 12 months has fallen from 60% last year to 47%.

According to the data, 85% of employers do not plan to lay off any staff in 2024, with 36% reporting plans to increase their workforce, while 58% of domestic CEOs indicated that the prices of their products or services will increase in the next year.

Of the external, threatening factors, the impact of inflation continues to be the most feared, with 51% of CEOs saying so. Skilled labor shortages were cited by 48%, macroeconomic volatility by 37%, geopolitical conflicts by 36% and cyber risks by 35%. Compared to the previous year, the perception of exposure to macroeconomic volatility and geopolitical conflicts has decreased the most, but the concern about the impact of climate change and the risks of cyber-attacks has remained unchanged among business leaders.

Szabolcs Mezei, Partner at PwC Hungary, told the press conference that 43% of Hungarian CEOs believe that their company will lose its viability in ten years under the current business model, a proportion unchanged from last year.

48% of Hungarian CEOs believe that the regulatory environment is driving change, while 35% believe it is hindering it. Another barrier to transformation was cited by 20% as bureaucracy within the organization, 20% as a lack of technological skills among staff and 19% as limited financial resources.

The adoption of generative AI is still a long way off, according to the survey, with only 18% of companies having it in their operations and 27% of executives saying it was already part of their technology strategy.