Swedish CFOs Fall into Deep Pessimism as Business Opportunities Shrink, Sweden

Date:

Swedish CFOs are becoming increasingly pessimistic as business opportunities shrink, according to the latest CFO Survey conducted by Deloitte and SEB. The survey reveals that Swedish CFOs’ views on future business opportunities have reached their lowest level since the global financial crisis of 2009. This significant drop in optimism is primarily driven by the engineering sector, where 50% of CFOs now perceive the situation as unfavorable, compared to just 15% in the spring.

The survey, which was carried out in September 2023, highlights a major shift in priorities for CFOs. Cost reductions have emerged as the highest priority, replacing organic growth, which had previously held the top spot. Cost reduction is now considered a priority by 21% of CFOs, followed by efforts to improve cash flow and drive organic growth.

Furthermore, CFOs are increasingly concerned about economic growth, with 55% identifying it as a significant risk for the next 12 months. This marks an increase from 49% in the spring survey. Other identified risks include pressure on margins and prices, as well as falling domestic demand.

In terms of adopting generative AI technology, the survey indicates that more companies are experimenting with it to understand its potential benefits. However, the majority of companies (85%) still perceive generative AI as either not important or only slightly important for their business and strategy. CFOs highlighted cost reduction, efficiency, and margin growth as the areas where generative AI could be most useful.

Though the survey paints a bleak picture of the current macroeconomic situation, experts believe there may be a chance of recovery in the next survey. Robert Bergström, a Partner at Deloitte, points out that the current period of falling sentiment has lasted for two years, just as long as the previous period of decline, indicating the possibility of a rebound in the future.

See also  Shiba Inu (SHIB) and Option2Trade (O2T): Predicted 2000x Increase Forecasted!

The CFO Survey conducted by Deloitte and SEB has been tracking the sentiment of Swedish CFOs since 2006 and covers a diverse range of sectors. Deloitte and SEB are both leading financial services firms, with a focus on providing responsible advice to shape a more sustainable future.

As CFOs in Sweden continue to grapple with shrinking business opportunities and prioritize cost reductions, it remains to be seen how the macroeconomic landscape will evolve in the coming months and whether a recovery is on the horizon.

Frequently Asked Questions (FAQs) Related to the Above News

What is the latest survey conducted by Deloitte and SEB about?

The survey conducted by Deloitte and SEB focuses on the views and sentiments of Swedish CFOs regarding business opportunities and priorities.

What does the survey reveal about Swedish CFOs' views on future business opportunities?

The survey indicates that Swedish CFOs' views on future business opportunities have reached their lowest level since the global financial crisis of 2009.

Which sector has experienced a significant drop in optimism according to the survey?

The engineering sector has experienced a significant drop in optimism, with 50% of CFOs perceiving the situation as unfavorable compared to just 15% in the spring.

What has emerged as the highest priority for CFOs in Sweden?

Cost reductions have emerged as the highest priority for CFOs in Sweden, replacing organic growth as the top priority.

What are some of the identified risks mentioned in the survey?

The identified risks include economic growth, pressure on margins and prices, as well as falling domestic demand.

How do CFOs perceive the importance of generative AI technology for their business and strategy?

The majority of companies (85%) still perceive generative AI as either not important or only slightly important for their business and strategy.

In what areas do CFOs believe generative AI could be most useful?

CFOs believe generative AI could be most useful in areas such as cost reduction, efficiency, and margin growth.

Is there hope for a rebound in the future according to the survey?

Yes, experts believe that there may be a chance of recovery in the future, as the previous period of falling sentiment lasted for two years before rebounding.

How long has the CFO Survey been tracking the sentiment of Swedish CFOs?

The CFO Survey has been tracking the sentiment of Swedish CFOs since 2006.

What is the focus of Deloitte and SEB as financial services firms?

Deloitte and SEB focus on providing responsible advice to shape a more sustainable future.

What remains uncertain for CFOs in Sweden?

It remains uncertain how the macroeconomic landscape will evolve in the coming months and whether a recovery is on the horizon for CFOs in Sweden.

Please note that the FAQs provided on this page are based on the news article published. While we strive to provide accurate and up-to-date information, it is always recommended to consult relevant authorities or professionals before making any decisions or taking action based on the FAQs or the news article.

Share post:

Subscribe

Popular

More like this
Related

HCLTech Partners with Arm on Custom AI Silicon Chips Revolutionizing Data Centers

HCLTech partners with Arm to revolutionize data centers with custom AI chips, optimizing AI workloads for efficiency and performance.

EDA Launches Tender for Advanced UAS Integration in European Airspace

EDA launches tender for advanced UAS integration in European airspace. Enhancing operational resilience and navigation accuracy. Register now!

Ethereum ETF Approval Sparks WienerAI Frenzy for 100x Gains!

Get ready for 100x gains with WienerAI as potential Ethereum ETF approval sparks frenzy for ETH investors! Don't miss out on this opportunity.

BBVA Launches Innovative AI Program with ChatGPT to Revolutionize Business Operations

BBVA partners with OpenAI to revolutionize business operations through innovative ChatGPT AI program, enhancing productivity and innovation.