Navigator 2020 Greece - Together we thrive - About HSBC
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Navigator 2020
Greece
Together we thriveContents 1. Overview
1. Overview In 2019 Greek companies
2. Business outlook were the most optimistic in
3. Business Investment Europe on their future growth.
4. Future strategy
5. International trade
In 2020, though, business outlook
6. Reshaping supply chains is distinctly more pessimistic
66%
7. Sustainability than last year and gloomier than
seen globally and in Europe.
Survey methodology
Resurgence of COVID is seen as the primary 9 out of 10 Greek companies have concerns
threat to growth and recovery. Two thirds of about their supply chain, so they have been
Greek companies expect to return to pre- increasing the use of technology, selecting
COVID levels by the end of 2022, still the suppliers based on their government’s
impact of COVID did not dampened their control of COVID-19 and tightening
intention to invest to grow. specifications/contracts. Two-thirds of Greek
While the vast majority of Greek firms Sustainability is gaining momentum
companies expect to
are feeling that international trade has among Greek firms, with the vast majority return to pre-COVID
levels of profitability
44
become more difficult and expecting realizing that it creates multiple business
that it will continue to be so in the next opportunities and drives growth. While %
year, their outlook on international trade below the global levels, most of the Greek by the end of 2022 and
is quite positive. Europe is currently the companies surveyed have plans or have set less than one in five think
most important trading region for Greek targets for various aspects of Environmental,
companies and is expected to remain so for Social and Governance (ESG) issues and
that it will take them until
the next 3-5 years. track their progress against these targets. between 2023 and 2025
Navigator 2020 Greece | 22. Business outlook
80
8
%
Post-COVID recovery
How business outlook has changed in the last twelve months
The proportion of Greek companies
79
which are more optimistic about their
business growth than a year ago has Pessimistic Optimistic
declined from 65% in 2019 to 28% in
2020, a significantly steeper drop than
seen globally and in Europe. 2020 8 38 24 28
88 of Greek companies, which is just
Two-thirds
a little lower proportion than seen globally,
2019 3 10 23 65
73 expect to return to pre-COVID levels of
profitability by the end of 2022 and less than
one in five think that it will take them until
between 2023 and 2025.
Expect to shrink More pessimistic about growth Expect to stay the same More optimistic about growth
86
Resurgence of COVID is seen as the primary
threat to growth/recovery, mentioned by
80
59% of Greek companies (compared to
46% globally) followed by concerns about
59%
decreasing demand (30%), an uncertain
political environment (24%) and workforce
85
morale (23%). Top 3 drivers of
business growth
77The key strategies, adopted or considered
by Greek companies to aid recovery, enable
growth and increase competitiveness show an 1 2 3
equal emphasis on cost cutting and improving cost cutting investment in expansion
82quality of products and services (41%)
the
and improving new skills in into new Resurgence of COVID is
the quality of the workforce / markets
followed by investment in new skills in the products and employee well- seen as the primary threat
7 workforce / employee well-being (33%) and services being
expansion into new markets (32%).
to growth/recovery
59%
Navigator 2020 Greece | 33. Business Investment 4. Future strategy
In line with the global trend, the pandemic Fewer Greek companies have undergone changes in the last 12 months
has not dampened the inclination of the compared to the global average (Greece: 64% vs. global: 74%), with close
majority of Greek companies to invest to to half expecting these changes to be short-term and that they will return to
grow. 63% of Greek companies intend to previous operations (Greece: 46% vs. global: 49%). Nervousness about future
increase investment in their business in the uncertainty, the need to reduce cost and change ways of working, as well
next year. Fewer than one in five intend to as advances in digitisation were the key reasons behind the changes that
reduce investment. Greek firms are planning businesses underwent.
to focus their investment on marketing, cash
flow and capital management and customer
Companies having undergone
63
experience. And they intend to enable this
%
experience through investing in technologies changes in the last 12 months
that help customer targeting, improve speed Greece
to market, facilitate product and service Global
innovation as well as enhance customer
experience.
64% 74%
63%
of Greek companies
intend to increase
investment in their
business in the next
Expecting these changes to be short-term and
year that they will return to previous operations
46% 49%
Navigator 2020 Greece | 483
0 20 40 60 80 100
5. International trade
80
%
Greek companies’ prospects 0
Lorem ipsum
20 40 60 80 100
for international trade Company’s prospects for international trade outlook (next 1-2 years)
79 outlook are positive but less
optimistic than in 2019 Negative Positive
While the vast majority of Greek Greece 12 3 14 67 4
companies are feeling that international
88 has become more difficult (81%
trade
vs. global: 63%) and expecting that it
will continue to be so in the next year Global 7 3 18 53 19
73
(63% vs. global: 52%), their outlook on
international trade is quite positive.
Don’t Know Very Negative Fairly Negative Fairly Positive Very Positive
71% of Greek companies do have a positive
86
outlook in the next 1- 2 years, but this
represents a 10 percentage points decline
80from 2019, aligned with the global trend. Europe remains the most important trading
block for Greece with more than 84% of The most important trading
Greek firms currently trading with European blocks for Greece
Compared to 2019, more Greek international
markets, followed by North America (28%).
71%
companies have not stopped/ reduced trading
85 any markets in the past 2 years (2020: Looking to the next 3 – 5 years, Europe
with
(2020: 53% vs. 2019: 61%) is likely to remain
65% vs. 2019: 54%), which is also higher than
the most important trading region for Greek
84% 28%
77 global level (2020: 50% vs. 2019: 45%). Greek companies.
international companies also uplifted their
proportion of international trade, with around
On the flip side, only 1% companies across
one-third of the companies having more than
the globe find the Greek market attractive.
82
50% of their business from abroad, which is
57% of companies in Greece think that
now on par with the global average. of Greek companies do protectionism is increasing, which is lower Europe North America
have a positive outlook than the global average 64%.
71%
Navigator 2020 Greece | 56. Reshaping supply chains
More than nine in ten Greek
%
Concerns relating to their supply chain
companies had concerns
relating to their supply chain
52 % Increasing cost
Financial resources / time spent
on managing the supply chain 31
49
Most of these concerns have to do with
increasing cost (49%), financial resources Suppliers being too distant from
/ time spent on managing the supply target customers or their business 31
chain (31%) and suppliers being too
distant from target customers or their of Greek companies
business (Greece: 31%).
cited cost reduction
as the key benefit of
%
Embracing technology (38%), selecting Top 3 changes made by Greek companies
suppliers based on their country/government’s to their supply chain over the past year
52
making changes to
control of COVID-19 (36%) and tightening %
specifications/contracts (30%) were the top their supply chains
changes made by Greek companies to their
supply chain over the past year. The top Embracing technology 38
immediate supply chain priorities in 2021
Selecting suppliers based on their country/
among Greek companies are the increase in
government’s control of COVID 19 36
use of technology (72% in Greece vs. global:
48%) as well as tightening specifications/
contracts (53% vs. 38%).
Tightening specifications/contracts 30
Navigator 2020 Greece | 67. Sustainability
%
94% of Greek firms stated that there are While below the global average, the majority Investment priorities enabling
multiple opportunities for their business of Greek companies have plans or have businesses to move forward
from improving their environmental and already set targets for various aspects of ESG
ethical sustainability, most notably in issues. The four most popular ESG targets 49
enhancing reputation (49%), contributing cited are recycling (83%), impacts on local Greece
to local communities (37%), attracting communities/ local community investment Global
investment (33%) and promoting (82%), energy usage and executive salaries/
employee well-being (33%). compensation (both at 80%). 37 37
33 33 34
32 32
75% of Greek companies (vs. global: 86%) In line with the global trend, 76% of Greek
29 30 30 29 29 30
expect their sales to grow over the next year companies (up from 69% in 2019) have 24 28
from a greater focus on sustainability, with the metrics in place to track environmental
majority (51%) anticipating this growth to be sustainability, 81% (up from 59% in 2019)
modest –up to 5%. have metrics in place to measure social 19 19
sustainability and 59% (down from 62%
in 2019) have metrics in place to measure
aspects of governance.
6 6
Measuring sustainability
Enhanced
reputation
Contributing to local
communities
Attracting
investment
Promote employee
well-being
New ways of working
Increased customer demand
climate change
Contributing to positive
Qualify for government
subsidies
More attractive employer
Not seeing any key
opportunities
Greek companies measuring all 3 aspects compared with 2019.
2019 69% 59% 62%
2020 76% 81% 59%
Environmental Social Governance
Navigator 2020 Greece | 7About HSBC Navigator Greece For further information about
The HSBC Navigator survey, which is the the research please contact:
largest of its kind, sponsored by HSBC. The
study gauges sentiment and expectations of Kate Woodyatt
businesses in the near to mid-term future on HSBC Global Communications
topics including: Business outlook, business katewoodyatt@hsbc.com
investment, future strategy, international trade,
reshaping supply chains and sustainability. It is Or click on
compiled from responses by decision-makers www.business.hsbc.com/navigator
at 10,368 businesses – from small and mid-
market to large corporations – across a broad Note
range of industry sectors in 39 markets. There may be a slight discrepancy between
the sum of individual items and the total as
Sample sizes for each market were chosen shown in the tables due to rounding.
to ensure the statistical accuracy of results,
with 101 businesses surveyed in Greece. The Whilst every effort has been made in the
survey was conducted between September preparation of this report to ensure accuracy
and October 2020. Interviewees were of the statistical and other content, the
polled on a range of questions including publishers and data suppliers cannot accept
expectations around future growth in trade, liability in respect of errors or omissions or Call to action
attitudes toward trade policy developments for any losses or consequential losses arising
and strategic business plans. The survey from such errors or omissions. The information Arupta cori repelli tatiati aturecum cus quo
represents a timely source of information provided in this report is not intended as bera cum quatectiae voluptat dus debitium
on the fast-evolving international business investment advice and investors should
environment. seek professional advice before making any
investment decisions.
Navigator 2020 Greece | 8You can also read
