Originally published by Robert E. Moritz on LinkedIn: APEC CEOs Continue to Rely on Trade to Boost Growth Globally
Key findings from PwC’s 2017 APEC CEO Survey
By Dinh Thi Quynh Van, General Director, PwC Vietnam; Bob Moritz, PwC Global Chairman
This week, we are in Da Nang at the Asia-Pacific Economic Cooperation (APEC) leaders meeting that brings together government and business leaders, where the mood is optimistic and focused on greater connectedness between businesses and organizations. The 21 APEC economies individually and collectively play a critical role in driving global trade and growth.
This year has been one of contrasts. The United States pulled back from the Trans-Pacific Partnership, and we saw a rise in nationalist electoral victories and anti-trade rhetoric around the world. At the same time, international trade flows are picking up, projected to outpace global economic growth in 2017 for the first time in years, according to the World Trade Organization. And recently, all eyes were on China — an APEC member that recently held its 19th Congress — where General Secretary Xi Jinping reaffirmed that China will not close its door to the world and will only “become more and more open.” He committed to adopt policies to promote high-standard liberalization and facilitation of trade and investment.
Against this backdrop, APEC CEOs said they are optimistic and ambitious about increasing their global footprint — in the 2017 PwC APEC CEO survey. Respondents also shared that a large portion of their global investments would be in APEC economies, further strengthening this important group and fueling deals activity. And they are keeping their eye on the effects of automation and consequent workforce readiness — indicating a clear commitment to finding ways for workers to adapt to an era of greater automation and job rebalancing.
We encourage you to explore the full report and our findings, including:
Despite rising trade frictions, trade deals — and their benefits — continue. Far from being deterred by anti-trade rhetoric and actions, 63% of the regional business leaders we surveyed told us they expect their global footprint will expand during the next three years, even as they adapt their strategies to the prospect of increased trade barriers. Trade deals continue, and a quarter of the CEOs we spoke to expect an increase in revenue opportunities over the coming year due to a new trade agreement. That said, the prospect of growing protectionism does cast a shadow. A fifth of the APEC CEOs we surveyed say they’ve experienced an increase in barriers during the past 12 months, and a third see this trend growing.