Looking ahead, CEOs are optimistic about the recovery, but concerns surrounding over-regulation remain prevalent for Luxembourg CEOs. The Covid-19 pandemic has enhanced the need to address cybersecurity. ESG will take centre stage in Luxembourg as 75% of the CEOs plan to increase their long-term investment towards sustainability and ESG initiatives, while  the pandemic has made digitalisation a necessity to survive Finally, upskilling will play a pivotal role in ensuring that the current workforce does not experience dramatic disruptions as a consequence of the accelerated digitalisation.

PwC has surveyed chief executives for its Global CEO Survey annually for the past 24  years. PwC Luxembourg takes part in this unique initiative every two years as a way to position Luxembourg on the international  stage, but also to provide more specific insights from -  and for  - our local CEOs. This report combines the global findings with Luxembourg specific insights in an attempt to benchmark Luxembourg with respect to the other territories, but also to compare internally the forces that drive the country’s growth agenda. 

Looking ahead, CEOs are optimistic about the recovery

CEOs are showing mounting confidence regarding the rate and scale of the global economic recovery, as the vaccine rollout gives rise to hope for a much-needed improvement in economic sentiment. The increased optimism among our respondents in this year's survey hints at the possibility of an economic recovery in 2021 and 2022. Indeed, the IMF predicts a 5.5% growth for the global economy in 2021, reflecting PwC predictions of a return to a pre-pandemic global economy by late 2021 or early 2022.

The main takeaways

• In line with the global findings, most Luxembourg CEOs are optimistic about a global economic comeback, with 79% of them believing global economic growth will improve in 2021. 
• 68% of Luxembourg CEOs are also forecasting an improvement in revenue growth and that percentage rises to 77% in the Financial Services sector.
• The pandemic accelerated certain transformations and raised concerns towards specific threats, with over-regulation and cyber threats being the most relevant ones in Luxembourg. Cybersecurity has also unsurprisingly surged among the top threats.
• In terms of key focus areas, this is a crucial year for Luxembourg CEOs to push for long-term investments in ESG initiatives and the financial sector globally to take center stage in the ESG revolution.
• Second, as the pandemic made digitalisation a necessity to survive,  85% of Luxembourg CEOs will increase their long-term investments  in digitalisation over the next three years
• Finally, upskilling will be at the centre of their workforce strategy. The rise  in digitalisation and automation will change the workforce structure and  the needs of companies.

John Parkhouse. CEO & Senior Partner, PwC Luxembourg said: “This year’s survey shows record levels of CEO confidence globally and locally in both the economy and business prospects with a key focus on the future drivers of ESG and Digitalisation.  However, this confidence remains fragile - especially in the real economy - with key questions globally around the pandemic recovery, and locally on the increasing burden and complexity of regulation.  The importance of talent and the upskilling of the workforce is strongly recognised and the need for business to work closely with government in this area.  Finally, and unsurprisingly as we all experience a more virtual world, cyber risk becomes critical in the minds of CEOs in Luxembourg and beyond.”

You can find the key findings as well as the full report here