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Central American Businesses Ravaged With Political Uncertainty as CEOs Prioritize Digitalization

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Nimrah Khatoon
New Update
Central American Businesses Ravaged With  Political Uncertainty as CEOs Prioritize Digitalization

The political uncertainty is the main concern of executives in Central America, according to the KPMG 2023 CEO Outlook study presented at the end of November. The report, which compiles the opinions of more than 1,300 CEOs of large organizations globally, including 45 from Central America, indicates that geopolitical instability is seen as the biggest threat to business growth in 2023.

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This concern was not on the executives' radar a year ago. Víctor Esquivel, Managing Partner of KPMG Mexico, emphasizes that the unpredictability of global politics has complicated strategic planning for businesses.

In addition, 91% of Central American executives are worried about rising interest rates and tightening monetary policies, factors that could contribute to a global recession. Inflation is also seen as a threat by 24% of the region's CEOs, who believe it will negatively impact the prosperity of their organizations over the next three years.

Technology a Significant Factor for CEOs in Central America

However, technology, and especially Artificial Intelligence (AI), is recognized by 95% of Central American CEOs as a factor that will have a significant impact on their companies. Faced with this, 29% of CEOs seek to advance digitalization and connectivity of their companies, as well as attract and retain the necessary talent to face technological challenges.

Presidential candidate Samuel García abandoned his aspirations to contend for the presidency of Mexico in 2024 after alleging irregularities in the process of separating from his post as governor of the state of Nuevo León.

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