Nearly 60% of Global CEOs Optimistic on Economic Growth Outlook — Evening Brief – 01.22.25
PwC’s 28th Annual Global CEO Survey reveals an optimistic outlook among decision-makers, with nearly 60% expecting economic growth to improve over the next 12 months. This optimism persists despite persistent concerns about macroeconomic volatility (29%) and inflation (27%), which remain the top risks anticipated by CEOs for the year ahead.
Nevertheless, regional variations exist. The most significant risk is perceived to be geopolitical conflict in Central and Eastern Europe (34%) and the Middle East (41%). In Western Europe, cyber risk (27%) is marginally more concerning than a scarcity of qualified workers (25%) and inflation (24%), with macroeconomic volatility (29%) at the top of the list. In Africa, inflation is the primary concern (39%), while North America and Asia-Pacific prioritize risks in a manner that is consistent with the global average.
The findings also reveal a notable shift in hiring intentions among business leaders. Out of 4,701 CEOs surveyed across 109 countries and territories, 42% plan to increase headcount by 5% or more within the next year, marking an increase from 39% in the previous year’s survey. Only 17% anticipate reducing staff, showcasing a generally optimistic outlook on employment despite lingering economic challenges.
The most pronounced hiring intentions are in technology and real estate (61% in each), followed by private equity (52%) and pharma/life sciences (51%). Smaller companies, with revenues under $100 million, are leading the way, with 48% planning significant staff increases.
“This year’s CEO Survey findings highlight a stark juxtaposition – business leaders around the world are optimistic about the year ahead, but also know they must reinvent how they create, deliver and capture value,” said Mohamed Kande, global chairman, PwC.
Generative AI (GenAI) is proving to be a transformative force in business operations. Over the past 12 months, 56% of CEOs have observed efficiency gains in employee productivity due to GenAI implementation, while 32% have reported increases in revenue, showcasing the technology’s ability to create direct financial benefits.
Despite the promising early results from GenAI, the technology’s performance has fallen short of the high expectations set by many companies. In 2024, 46% of CEOs anticipated profitability improvements from AI adoption. However, by 2025, only 34% reported realizing those gains, indicating a significant gap between expectation and outcome.
Trust in AI remains a critical barrier. Only about 33% of CEOs expressed a high degree of confidence in embedding GenAI into essential processes, underscoring concerns around issues like accuracy, ethics, and reliability.
Despite the performance gaps observed in GenAI adoption, optimism remains high for its future impact on profitability as 49% of CEOs now expect profitability improvements from GenAI within the next 12 months, slightly higher than last year’s forecasts. Over the next three years, 47% anticipate integrating AI, including GenAI, into their technology platforms; 41% plan to embed AI into core business processes; and 30% foresee leveraging AI for new product and service development.