Global Business Optimism on the Rise

(Reuters) – Companies around the world have grown increasingly optimistic about global growth for the coming year, although concerns about economic volatility and inflation persist, according to a survey released on Monday as leaders gathered in Davos, Switzerland.

Nearly 60% of bosses in a survey from accountants PwC expressed optimism about global growth in the next 12 months, a significant increase from 38% a year earlier. It is worth noting that the survey was conducted mostly prior to the U.S. election.

However, 29% of chief executives indicated that macroeconomic volatility might lead to significant financial losses in the upcoming year, and nearly the same percentage cited inflation as a major concern.

> “This survey shows that business leaders are facing the future with a mix of optimism about the economy and a recognition that businesses must fundamentally reinvent how they create value to thrive,” said Carol Stubbings, PwC’s global chief commercial officer.

Britain was ranked as the second-best country to invest in, following the United States, marking the first time it has reached this position in records dating back to 1997, according to PwC.

In response to the survey, finance minister Rachel Reeves mentioned that investment would be crucial for driving economic growth.

More than half of British bosses expressed optimism about economic growth in the next 12 months, an increase from 39% in 2023.

The global survey also indicated that advancements in generative AI have not led to a decrease in employment opportunities.

Most chief executives reported that investing in climate initiatives either reduced their costs or had no effect on them, though 24% noted that complex regulations were making climate investments more challenging.

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