China’s slowing economy affects outlook

China’s slowing economy, the eurozone crisis and a possible recession in the US have taken a toll on the confidence of CEOs in the Asia Pacific region, PricewaterhouseCoopers said in a report on Tuesday.

Just 36 percent of executives surveyed by PwC say they are “very confident” of business growth over the next 12 months. Their prospects however improve in the long term, with more than half expressing a high level of confidence for the next three to five years.

The CEOs say the top economic risks to their growth are a spike in oil prices to more than $150 a barrel, a US recession, breakup of the eurozone and the slowing of China’s GDP growth to below 7.5 percent. Other top concerns were a major disruption of the Internet or a cyberattack, and a pandemic or natural disaster.

Asia Pacific CEOs also believe the region is on track to achieve greater economic integration, a top priority for the Asia Pacific Economic Cooperation, whose summit meeting begins in Vladivostok, Russia, later this week.

Nearly half of the CEOs say removing barriers to trade in services is key to greater integration within the 21 APEC members. They also called on APEC’s political leaders to harmonize regulations across the region and to do more to encourage labor mobility and the free flow of investment.