After a year of pandemic upheaval, business executives are feeling cautiously optimistic about the future, according to a survey released by EY.

According to EY’s 23rd Global Capital Confidence Barometer, 23 per cent of leaders predict returning to pre-pandemic levels of profitability this year, and 44 per cent in 2022.

The survey found business leaders are seeking regions for growth, with Europe showing the most potential for generating new opportunities (39 per cent), followed by Asia-Pacific (30 per cent) and the Americas (24 per cent).

“The Covid-19 outbreak shook our communities and businesses to their core,” said Keiran Hutchison, EY partner and strategy and transactions leader for the Bahamas, Bermuda, British Virgin Islands and Cayman Islands region.

“While risks and uncertainty still remain, it’s promising that the C-suite has a more optimistic view of the year ahead and is acting proactively and strategically to reframe their future.”

Following unprecedented disruption in 2020, leaders will revamp their mergers and acquisitions and investment strategies to ensure growth. Nearly 49 per cent plan to acquire assets in the next 12 months, and 65 per cent plan to acquire cross-border targets.

The driving factor for investment plans remains mitigating the long-term impact of the pandemic-induced economic slowdown, with 63 per cent increasing investments in technology and digital capabilities, while 57 per cent will boost investment in customer engagement.

Mr Hutchison said: “Notwithstanding the challenges of the last year, the financial services jurisdictions in the region have all continued to see opportunities in global financial services and whilst the next 12 months will almost certainly see restructuring and capital recycling in the local leisure and hospitality sector, we expect that the mobility of global capital will bring new players and opportunities to all our regional jurisdictions.”

Steven Napier, associate partner at EY Bermuda Ltd and regional valuations, modelling and economics leader said: “Investing in innovation and digital technologies continues to be a cornerstone of business’ growth strategies. Executives realise that acquiring technology and innovative start-ups is a key driver for valuable acquisitions.”

Learn more about the survey at ey.com/en_gl/ccb