CEOs optimistic about global growth but risks remain, survey shows

DAVOS: Companies around the world grew increasingly more optimistic about global growth in the coming year, but concerns about economic volatility and inflation remained, according to a survey on Monday as leaders gathered in Davos, Switzerland.

Nearly 60% of bosses in a survey from accountants PwC felt optimistic about global growth in the 12 months ahead, compared to 38% a year earlier. The survey was conducted mostly before the US election.

But 29% of chief executives said macroeconomic volatility could lead to a substantial financial loss in the year ahead, and nearly the same amount cited inflation as a top concern.

“This survey shows that business leaders are facing this future with a combination of optimism about the economy and realism that business needs to fundamentally reinvent how it creates value if it is to thrive in the future,” Carol Stubbings, PwC’s global chief commercial officer, said.

Britain was ranked as the second-top country to invest in behind the United States, the first time it reached that spot in records dating back to 1997, PwC said.

Responding to Monday’s survey, finance minister Rachel Reeves, said investment would help to drive economic growth.

More than half of British bosses were optimistic about economic growth in the next 12 months, up from 39% in 2023.

The global survey showed advancements in generative AI had not led to a reduction in employment opportunities.

The majority of chief executives said investment in climate initiatives had either reduced their costs or had no bearing on their costs, although 24% said complex regulation was making climate investment more difficult.

PwC’s survey was conducted between Oct. 1 and Nov. 8 across 109 countries.