We are part of a challenging world that has been marked by crises such as the global pandemic, which impacted the economy and generated health security issues and market volatility. Companies have been dealing with interconnected challenges, including the transition to a green economy and other social pressures such as inequalities and gender equity. To all this is added the urgency of the climate crisis, which has been calling for rapid responses, while constant digitalization and innovation are crucial for business competitiveness in this scenario of accelerated transformation. Despite this dynamic scenario, managers’ confidence in the national economy appears to be improving since the last edition, having registered an increase to 12.19 compared to the last edition held in October 2023 (10.62).
In the different constraints to which companies have been subjected, wars and geopolitical tensions win the race as the biggest threats to the national economy according to 86% of respondents. Furthermore, attracting and retaining talent (78%) and technological transformation (57%) are the main challenges that companies assume they will face in the short to medium term. Still in the context of the topic of talent, 66% of businesspeople recognize that they have already faced a shortage of qualified labor due to the emigration of young graduates.
In this Barometer, topics related to the national economic and political context were also addressed. According to the perspective of 63% of managers, the year 2024 will be the same or better than the previous one. However, 78% of respondents seem to agree with Banco de Portugal’s forecasts, believing that the national economy will grow by 2%.
In the political sphere and taking into account the most recent electoral results, one of the measures proposed by the AD focused on reducing the IRC. When asked about the best way to use this value in their companies, 61% of respondents said they would invest in equipment or technology while 34% would choose to increase salaries. Regarding the most priority structural reforms in Portugal, Justice and Public Administration, reach consensus with 82% and 62% of votes, respectively.
With regard to the Recovery and Resilience Plan and despite its importance in boosting economic recovery and promoting the country’s resilience, half of those surveyed confirm that they are not making investments within the scope of the PRR.
The focus on Sustainability and the Digital Revolution
Digital transformation has been the focus of companies in recent decades. However, this concept and its different applications may vary depending on the sector. The only constant is that digital transformation aims to benefit from technological tools to improve or create new processes, which provide more efficient operations, better customer experiences and more efficient services. In a competitive global environment, not keeping up with the transformation can mean losing business opportunities to the competition. Still, more than half of respondents (53%) admit that their organizations are still in the early stages of exploring the potential of AI technologies. On the other hand, only 7% say that AI technologies are already integrated into the core processes and operations of their organizations.
In the context of sustainability, which acquires fundamental relevance in business operations, 66% of businesspeople recognize that it is essential to concentrate efforts on promoting energy efficiency and the adoption of renewable energy sources. This prioritization reflects a robust commitment to reducing the carbon footprint and transitioning to a more sustainable energy paradigm.
To achieve and ensure the continuity of the growth trajectory in 2024, respondents state that their biggest bets will be on increasing productivity (72%), improving the sales force and the customer journey (48%) and, finally, on Technology and Artificial Intelligence (45%).
The results presented resonate with the continuous need to improve processes and operational effectiveness, two crucial axes to maintain competitiveness in a dynamic market.
