More CEOs expect economic improvement this year

A higher number of chief executive officers (CEOs) working in firms in Bangladesh expect that the economy is likely to improve in the next one year compared to that a year earlier, according to a survey by PwC Bangladesh released on Saturday night.

About 36 percent of the CEOs are expecting the economic growth rate to improve, compared to 31 percent in a similar survey conducted last year.

The optimism coincides with a myriad of challenges facing the economy such as high inflation, low foreign currency reserves and a sudden rise in energy prices.

The PwC surveyed 52 local CEOs as a part of its global survey among CEOs across 105 countries and territories from October 2 through November 10 of 2023.

In the dynamic global business landscape, local CEOs are confronting an array of challenges and opportunities, the report said.

"Thriving in the era of continuous reinvention" reflects the sentiment of business leaders in Bangladesh amid ongoing economic changes, technological evolution, and environmental concerns.

The survey provides insights into CEOs' strategies for maintaining business relevance and operational efficiency against the backdrop of significant macroeconomic growth and emerging market pressures.

According to the findings of the survey, approximately 57 percent of CEOs in Bangladesh anticipate the necessity for substantial business model changes over the next decade, echoing global trends towards innovation and sustainability.

It also found that nearly half of them (47 percent) have adopted new technologies to create, deliver, or capture value for their business.

Another 28 percent stated that they developed new technology in-house by forming their own teams.

The PWC said local CEOs have made good progress in driving decarbonisation initiatives for their companies.

Around 72 percent stated that they made progress in their energy efficiency improvement programmes and expressed an optimistic view about the impact of artificial intelligence (AI) in their organisations.

Around 79 percent expect generative AI to increase efficiencies in their own work time, and 74 percent expect it to improve their employees' efficiency in the next 12 months, the report noted.

Additionally, 57 percent expect an increase in revenue and 60 percent anticipate a rise in profitability due to generative AI within the same period.

"We see a rising number of CEOs in Bangladesh who are keen to critically assess their organization's long-term relevance with respect to global megatrends such as climate change and technological advancements," said Arijit Chakraborti, director and office managing partner at PwC Bangladesh.

This is indicated by the increasing number of CEOs estimating the relevance of their present business to be less than 10 years, he added.

Mamun Rashid, country clients and markets leader, PwC Bangladesh, said: "CEOs in Bangladesh continue to deal with short-term challenges and long-term opportunities for their business."

He also said an increasing number of CEOs are leading the transformation of their organisations through technology adoption, driving impactful changes and delivering meaningful results for their stakeholders.

The findings from the survey underscore a critical juncture for business leaders in Bangladesh.

The CEOs must champion transformative leadership, emphasising adaptability, innovation, and sustainability to navigate the evolving market dynamics, PWC suggested.

It further said investing in digital capabilities, fostering a culture of continuous learning, and embedding environmental considerations into core business strategies are pivotal.

Additionally, aligning organisational objectives with changing consumer preferences and regulatory landscapes will be essential for sustained growth and competitiveness, PWC noted.

Finally, the PWC said the drive towards digitalisation, coupled with a commitment to sustainable practices, indicates a strategic shift towards resilience and relevance in a rapidly changing world.