Chinese tourist visitation to Australia is roaring ahead and the same is true of investment, with a global survey of chief executive officers (CEOs) showing Australia overtaking the United States, Japan and Germany to become the top investment destination among CEOs based in China.
The PwC report, “CEOs’ curbed confidence spells caution”, surveyed 1378 global CEOs in 91 territories, including 176 in China and Hong Kong.
“CEOs … are diversifying their bets away from the United States and toward a broader array of markets,” the report states.
“Australia seems the principal beneficiary: not even in China’s top 10 last year, it has risen to the number one destination for Chinese investment.”
Australia’s performance bucked negative global trends as CEO expectations for revenue and economic growth fell compared to 2018.
The reasons for increased pessimism vary by region, according to the survey. Among CEOs in the Asia-Pacific region, fear of trade conflicts is now the principal threat to growth prospects, cited by 38% of surveyed executives.
Meanwhile, cyber threats topped the list in North America, with 45% of CEOs viewing online threats as a concern. Fear of over-regulation headed the list in Western Europe, cited by 33% of CEOs.
With India challenging China as the fastest-growing large economy, the survey also reveals a shift in CEOs’ investment focus.
“India is the rising star on the list of most attractive investment markets, the report states. “It surpassed Japan last year, and this year it overtakes the UK.”
In positive news for the region, Asia-Pacific CEOs appeared the most buoyant in terms of revenue expectations, with 41% expecting corporate revenue to rise over the coming three years.
The annual PwC report has established a reputation for credible forecasting, according to Austrade. Since 2009, CEO expectations of future revenue have proved a reliable indicator of economic growth.
Edited by Peter Needham
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