PwC’s 14th Hungarian CEO Survey

Increasing confidence in the world economy, cautious corporate expectations

Survey
10 minute read

Seventy percent of Hungarian CEOs expect acceleration of the global economic growth; 60% of them made optimistic statements regarding the Hungarian economy but only 39% are confident about the growth of their companies. The respondents to PwC’s 14th Hungarian CEO Survey predict a 1.8% GDP growth, a 415 forint-to-euro exchange rate, and 4.8% inflation for 2025. The business achievements resulting so far from the use of AI fall short of the expectations expressed in last year’s survey, but two-fifths of the CEOs expect GenAI to increase their profitability in 2025. This is somewhat qualified by the fact that merely 38% of chief executives have trust in technology. Despite the signs of global climate change, sustainability is still not a priority for CEOs.

CEO's predictions for 2025

The point of view by the participating CEOs at the end of 2024

HUF 415

the average forint-to-euro exchange rate

4,8%

inflation rate

1,8%

change in GDP compared to last year

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An accelerating economy with no changes in revenues?

Globally, 58% of the CEOs expect an acceleration in the growth of the world economy and one-fifth expect a slowdown. Hungarian CEOs are way more optimistic: 70% of them are confident about a global acceleration and only one-tenth expect a slowdown. The proportion of Hungarian CEOs saying that global economic growth will accelerate has never been so high.

“The change in confidence about improving economic growth has always signalled the direction GDP will change. The current results suggest that last year’s growth will accelerate. Hungarian CEOs are more confident than ever before that the global and Hungarian economy will grow and are less confident than ever before that their revenues will increase. The growth of some could easily present a problem for many. The question is where trust and lack of trust comes from,”

said Szabolcs Mezei, Partner at PwC Hungary.

Preparing for the future amidst the skills shortage

Considering the external factors impacting companies, Hungarian CEOs are generally significantly less concerned compared to 2023 but are still more worried than their global counterparts. The top threat is the skills shortage: 44% of Hungarian CEOs are concerned about this, with the proportion of global CEOs concerned being “only” 23%. Compared to last year, perceived exposure to geopolitical conflicts and macroeconomic volatility has hardly changed (36% and 38% perceive increased exposure); however, the proportion of those concerned about inflation is much lower than last year (51% last year, 39% this year). Meanwhile, the proportion of CEOs having high concerns about cyber risks is steadily increasing (38% this year, compared to 35% last year and 33% two years ago).

Redefining strategy in different fields

The ability to change is indicated by the fact that 55% of Hungarian companies developed innovative products or services in the past five years, as opposed to the global 38%; 40% formed new strategic partnerships, and 38% opened up to new customers.

Hungarian companies generated 13% of their revenues from the introduction of new product groups or from new market locations, and 4% from new, separate business activities.

Twenty-nine percent of Hungarian companies and 55% of companies worldwide are planning to acquire other companies in the next three years. This does not involve entering a new industry for more than half (54%) of the Hungarian companies concerned. This proportion is 37% globally. Szabolcs Mezei highlighted:

“While Hungarian enterprises planning an acquisition primarily target acquiring their competitors, globally, acquisitions are aimed more at entering new industries.”

Artificial intelligence: helpful or harmful?

Although 20% of CEOs said that artificial intelligence (GenAI) does not play a role at their companies, the other 80% reported explicit efficiency gains from the use of AI. In addition, technology also brought an increase in revenues and profitability for more than one-tenth of the companies. These results fall short both globally and in Hungary of the forecasts CEOs made last year, but expectations are still very positive. For example, two-fifths of the respondents expect a growth in profitability from the use of GenAI in 2025.

“The keys to business success are trust and cooperation. It is perplexing that CEOs expect to future-proof their companies with a technology they don’t really trust. The question is whether this indicates a general lack of trust or whether the trust they place in their employees’ AI skills offsets their lack of trust in the technology itself. Both statements are probably true. However, the gains will be tangible only for companies where the introduction and use of AI enhances trust and cooperation,”

said László Radványi, Country Managing Partner of PwC Hungary.

Gábor Orbán is the 2024 Most Inspiring Leader of the Year Award Winner

Based on the opinions of 252 Hungarian CEOs, we have awarded the Most Inspiring Leader of the Year Award for the third time. This distinction recognizes a Hungarian company leader who is seen as a role model by business leaders in Hungary. This year, we awarded the CEO of Richter Gedeon Nyrt., Gábor Orbán.