Finding New Ways to Make It Work
According to the World Bank, China's GDP growth is projected to rise to 5.6 percent in 2023, driven by the rebound of consumer demand. In the process, capital spending in infrastructure and manufacturing is expected to remain resilient, despite the soft external market demand. CFOs in the country will continue to have a challenging year. Deloitte China recently surveyed CFOs in the country to outline their challenges and future perceptions. As expected, the pandemic and the subsequent economic recovery is the top external risk in all sectors.
Deloitte China’s CFO Program Leading Partner Norman Sze says, “Respondents were more cautious about the outlook for China's economy at the time of the survey. However, CFOs still believe China is better positioned than other economies to recover growth, as other major economies show signs of a slowdown similar to recessionary levels. Indeed, more than 40 percent of respondents feel optimistic about China’s economic outlook in 2023.”
However, the investors will continue to demand both growth and profitability at the same time. Hence, CFOs must find ways to ensure shorter timelines and intact quality with lower costs. That means coordinating with other C-suite executives, reimagining work, and tech-enabling the organization. They need to build business strategies that deliver sustainable outcomes that are quickly reflected in profit and loss (P&L) statements. This also means this is the year to monetize investments in digital technology. Indeed, many of these technologies, some of them in early development, are already creating significant impacts. We have come up with a special issue based on CFOs in Hong Kong, one of the most competitive business arenas in the world.
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