Australian CEO predicting new turmoil in 2022 but cautiously optimistic: Survey

The Australian Industrial Group (Ai Group), the peak group representing domestic employers, reveals that business leaders are cautiously expecting 2022, despite the expected severity of the turmoil. I made it.

Report Australia’s CEO’s expectations are based on a survey conducted across Australia in October 2021 with 346 responses from CEOs of companies with just under 120,000 employees.

Innes Willox, CEO of Ai Group, said the results clearly indicate that he expects the CEO to face new COVID-19-related turmoil in 2022. 2021.

“As explained in the report, these expectations and their expectation that some of these high costs can be passed on to customers are the relatively modest inflation outlook that official economic institutions expect business leaders to do. I’ll make you conflict. ” Said.. “It is clear that the inflation outlook is an important area to watch in the coming months.”

Two years after the pandemic, 79% of respondents expected further turmoil, with nearly half ranking COVID-19 as the biggest constraint on growth.

Most people expect further disruption in the supply chain, with only 17% expecting the situation to improve compared to 2021, and nearly one-third expecting the situation to remain unchanged. I am.

Skill deficiencies are the third major obstacle to business growth, and nearly three-quarters of CEOs expect it to be difficult to find and retain skilled staff this year.

Companies are preparing to face these challenges through means such as renegotiating supply contracts, finding alternative suppliers, improving online capabilities, developing staff and investing in new technologies.

Epoch Times Photo
On June 27, 2021, a restaurant employee stands at the entrance to a takeaway restaurant on a quiet street in central Sydney, Australia. (Steven Saphore / AFP via Getty Images)

Despite these challenges, there is also cautious optimism this year. More than 2.5 times more CEOs expect more employees than they expect to see fewer employees.

There was a big difference in inflation expectations of business leaders compared to public institutions such as the Treasury and the Reserve Bank of Australia (RBA).

Nearly four in five business leaders expect further cost pressure, with only one percent expecting costs to subside.

RBA said in November updatePrior to the outbreak of Omicron, Australia, like the rest of the world, experienced rising inflation, but the underlying inflation rate was still low.This is also Repeated At the board meeting in December.

“Members pointed out that inflationary pressures in Australia are lower than in many other countries … The central forecast was that underlying inflation would reach 2.5% in 2023,” the board said. ..

The Ai Group said this difference in inflation expectations is the “critical point” of the difference that will be closely watched over the next few months.

Rebecca Chu


Rebecca Zhu is an Australian reporter based in Sydney. She focuses on Australia’s economy, property and education. Contact her at [email protected]