This enormous uncertainty Russia’s military intervention in Ukraine watered down trust end of normalization and pandemic restrictions. strong and rapid economic recovery. As El Periódico de España reports, the pre- and post-war launched by Vladimir Putin has brought about a shift in the way Spanish companies view the evolution of the economy this year.
Percentage of top executives of Spanish companies who predict the Spanish economy will do better or much better this year fell from 43% to 21% Since the war in Ukraine began. According to the ‘Perspectives Spain 2022’ study by KPMG and CEOE employers, executives predicting that the economy will get worse, or much worse, jumped from 19% to 45% in two surveys conducted before and after the New Year’s Eve. occupation among a thousand rulers.
Almost eight out of ten managers (77%) climbing inflation as one of the main threats For the Spanish economy for the full year 2022, 37% point to a weakening of the global economy as a major risk, 36% point to a possible increase in taxes, and 30% of respondents warn of escalating geopolitical tensions.
Just over a third (37%) of executives surveyed admit that they are reviewing or revising their company’s 2022 strategy due to the impact of the war in Ukraine, but more (41%) are not doing so while they wait. to adjust their response to how the conflict develops.
continue with the plan
“Managers remain more pessimistic in the face of the evolution of the economy and worsening factors such as inflation, while maintaining their strategic vision and prospects for investment, growth and hiring,” explains Juanjo Cano, president of KPMG Spain. “Despite all the negativity, The Spanish company reaffirms the motto that adaptation is the key to survival”.
And according to research by KPMG and CEOE, 77% of executives surveyed predict that their company’s turnover will increase On the set of 2022, despite the uncertainty caused by the war and other factors such as the energy crisis. And nearly half (48%) of executives expect revenue growth to be over 5%. In the survey conducted before the start of the war, the percentages were similar at 80% and 47%, respectively. Likewise, six out of ten companies plan to increase their investments this year, and the target was maintained in both surveys.
Recruitment estimates for Spanish groups remain optimistic even after Putin’s invasion, although they were moderate between the first survey (conducted between December and February) and the second survey (April and May). Almost half of the companies 46% plan to increase their templates. While the ratio of managers who predict that they will reduce personnel in practice did not change in both surveys, it is at the level of 11%.
“Spanish businessmen are aware that we are in a difficult period where additional measures are needed to consolidate the recovery that has begun and to confront the threat posed by uncontrolled inflation,” said Antonio Garamendi, CEOE chairman. “Absolute continue to take steps to transform our economy and make it more efficient and productive, digital and sustainable. This requires certainty and a stable regulatory environment, reforms to correct structural weaknesses, as well as a framework for improving business activity that offers a reduction in taxes and fiscal incentives”.