CEOs’ confidence about prospects for short-term business growth dropped by almost half since last year and fears of a global recession is a major threat according to the PricewaterhouseCoopers (PwC) 11th Annual Global CEO Survey.

The current uncertainty being played out in global financial markets echoes this drop in confidence among global CEOs.

The annual survey is based on interviews of 1,150 CEOs in 50 countries including 30 from Canada.

According to the survey this year, only 33% of Canadian respondents are very confident about revenue growth over the next 12 months — a pronounced drop of 27 points from 60% last year, and compares to 50% of CEOs globally.

Canadian CEOs however, remain confident about longer-term growth and their competitive strengths, with 46% indicating they are very confident in revenue growth over the next three years, compared to 42% globally.

Coupled with the lack of business confidence, Canadian CEOs are most concerned about a lack of key labour skills (83%), over-regulation (64%), followed by downturns in major economies (63%).

Similarly, Global CEOs indicated that a downturn in major economies (61%) and lack of key labour skills (61%) are their main concerns, followed closely by over-regulation (59%).

According to CEOs in Canada, talent, agility and collaboration are their main tools to achieve a competitive advantage for their companies, which differ from the opinions of their peers in other parts of the world. Access to, and retention of, key talent is considered by 97% to be a key source of competitive advantage (versus 74% globally). Ninety-three percent also believe that the ability to adapt to change is necessary to get an edge over the competition, compared to 76% of global respondents. Another growth tool noted by 80% of Canadian CEOs is the importance of implementing successful collaborative industry and business partnerships (versus 61% globally).

“The war for talent remains a key concern among Canadian CEOs, with over three-quarters indicating that their time is best spent on the people agenda,” says Ellen Corkery-Dooher, a PwC advisory services partner.

According to the survey, respondents are focusing on the building blocks of growth to grow their businesses. Thirty-three percent of Canadian CEOs put expanding in their existing markets as a top priority, followed by geographic expansion of their business at 27%. This compares to 30% globally who indicate better penetration of existing markets is their main growth factor, followed by new product development at 20% and geographic expansion at 19%. Ninety percent of respondents in Canada are looking to finance growth through internally generated cash flow compared to 82% globally.