Executives Expect Economic Downturn in 2012, But Still Invest for Growth

They might be wrong, but global executives think there will be an economic downturn in 2012, and the sentiment is pervasive. Some 85 percent of CEOs surveyed said they believe their enterprises will be affected by an economic downturn in 2012, according to Gartner analysts.

The Gartner CEO and senior business executive survey of more than 220 CEOs in user organizations from more than 25 countries was conducted in November and December of 2011, from organizations  with annual revenue of $500 million or more.

Concerns are less severe in the Asia/Pacific and North America regions than in Europe and Africa, it is the dominant point of view within each of the three geographies. But there is an important qualification.

“Costs are now the second biggest priority area, the highest ranking in our surveys since 2009,” said Mark Raskino, vice president and Gartner fellow. The number one priority remains growth.

That might be why CEOs said they will increase IT investment in 2012, rather than cut it.