The Strategist

PwC survey: investors and company are optimistic about investment income growth

03/01/2018 - 14:10

Investors and company executives improved their expectations for growth in 2018 compared to the previous year, according to a global survey of PwC investors. All are confident in the growth of income from investments.

PwC specialists conducted a survey of 1,293 enterprise managers and 663 investment specialists from around the world: fund managers, stock market analysts, specialists in fixed income instruments, rating agencies and private investors. The survey compares responses of investors 'and analysts' with responses of company executives.

In general, according to PwC, both investors and business leaders are more confident in the future rates of economic growth than last year. 54% of investors (+9 percentage points to the previous year) and 57% (+19 percentage points) of executives expect an increase in the rate of world economic growth.

However, both in the long term and in the short term, according to the PwC survey, investors are more pessimistic about the forecast of investment returns than the leaders of enterprises.

Less than a quarter of investors (23%) are quite confident in the rate of annual growth, while among leaders such confidence is felt by 42%. Only one in five investors (20%) do not doubt the increase in revenue in the next three years (45% of managers).

Investors are sure (85%) that among the obstacles to economic growth are the destabilizing influence of new technologies (64% of managers), changes in customer behavior (81% of investors versus 68% of managers) and sales channels (76% of investors vs. 60% of CEOs).

More than a quarter of investors (26%) believe that this year artificial intelligence will have a greater impact on staff optimization plans than last year, when such a view was held by 13% of investors.

The five countries that investors and business leaders consider most important for economic growth have not changed this year: the US, China, Germany, the United Kingdom and India. At the same time, in the eyes of investors, the gap between the United States and China is narrowing, while the leaders of enterprises allocate more to the United States.

In 2018, the US outperformed China by 13% (the USA - 78%, China - 65%), in 2017 - by 23%. At the same time, there was a gap between the perception of the significance of Germany and the United States, probably due to the uncertain situation with the UK's withdrawal from the EU. Last year, an equal number of investors voted for Britain and Germany - 32%, this year the country earned the same number, while the popularity of Britain fell to 21%.

Germany remained on the third place, and the UK - on the fourth place in the list of leaders among the countries having the greatest impact on the growth of the world economy.

There was also a big difference between the level of concern of investors and business leaders in connection with a decrease in the level of trust in business. More than a third (36%) of investors are concerned about the decrease in the level of trust of clients to organizations, while only 18% are alarmed among managers.

With regard to the formation of trust on the part of company employees, the majority (60%) of investors pin their hopes on payments and benefits (51% of managers), while most managers believe in the importance of corporate values (73% of managers, 56% of investors).