While economists forecast a soft landing, Australian business leaders anticipate a 2024 recession or believe one is already underway—59% compared to 46% in 2023.
In contrast, business leaders also expressed widespread economic optimism. Nearly 7 in 10 respondents expressed confidence in the global (69%) and national economies (68%), notably higher than respondents in the U.S. and U.K.
Leaders’ confidence extends to their industries (73%), companies (80%) and the global economy (69%). Most survey respondents expect to see increases in their revenue/sales (82%), profits (78%), credit needs (77%) and capital expenditures (73%). Likewise, more than half of Australian business leaders are looking to expand into new distribution channels (54%) and geographical markets (53%).
Australian business leaders know there are obstacles ahead. The competitive environment and cybersecurity and fraud concerns topped the list of business concerns at 28%, as the country has seen several high-profile data breaches in the last 12 months. And amid rising interest rates and headlines about reduced holiday spending, lack of consumer confidence (26%) rounded out leaders’ biggest business concerns. Plus, nearly three-quarters of companies report costs rising as a result of inflation.
Artificial intelligence may help leaders achieve tackle obstacles ahead; 86% of Australian business leaders are currently using or considering using AI tools for their business. Financial management and accounting was the top area where Australian leaders use or plan to use AI.
Contributors
Robert Bedwell
Chief Executive Officer, Australia and New Zealand
Kerwin Clayton
Head of Commercial Banking, Asia Pacific
Lindsay Atkinson
Head of Commercial Banking Treasury Management, Australia
Elizabeth McAlpine
Head of Commercial Banking Industrials and Consumer Coverage, Australia
About the survey
In its third year, the annual Australia Business Leaders Outlook survey is a snapshot capturing the concerns and expectations of senior business leaders at midsize companies with annual revenues generally ranging from AU$20 million and AU$2 billion.
This year, 209 respondents completed the online survey between 16 November and 13 December 2023. Results are within statistical parameters for validity; the error rate is plus or minus 6.6% at the 95% confidence interval.
Read our other 2024 Business Leaders Outlook Reports.
JPMorgan Chase Bank, N.A. Member FDIC. Visit jpmorgan.com/commercial-banking/legal-disclaimer for disclosures and disclaimers related to this content.
