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Global CEOs Express Optimism For Growth But Emphasize Reinvention Amid Risks

by THEFUTURE.TEAM
January 22, 2025

At the World Economic Forum in Davos, optimism among global business leaders hit its highest level in years, according to PwC’s 28th Annual Global CEO Survey. Yet, despite this renewed confidence, the findings highlight the urgent need for companies to address critical challenges ranging from economic volatility to organizational reinvention.

Optimism On Growth

Nearly 60% of CEOs believe global economic growth will improve over the next 12 months, a sharp increase from 38% last year and just 18% in 2023. This growing confidence is reflected in workforce expansion plans, with 42% of CEOs expecting to increase headcount by at least 5% in 2025—more than double the proportion planning reductions (17%).

This optimism is strongest among smaller companies (48%) and sectors such as technology (61%), real estate (61%), private equity (52%), and pharma (51%).

Regional Risks And Concerns

While optimism reigns globally, macroeconomic volatility (29%) and inflation (27%) remain top concerns for CEOs overall. Regional priorities, however, show significant differences:

  • Middle East: Geopolitical conflict is the primary concern for 41% of CEOs.
  • Western Europe: Cyber risk (27%) narrowly surpasses inflation (24%) and labor shortages (25%).
  • Africa: Inflation takes precedence, with 39% citing it as the top risk.
  • North America and Asia-Pacific: Risk perceptions align closely with global averages.

Despite these challenges, the survey suggests leaders are approaching 2025 with a balanced perspective—optimistic about growth but pragmatic about navigating risks.

The Reinvention Imperative

The survey reveals a stark reality: 42% of CEOs believe their businesses won’t be viable a decade from now without significant transformation. Among those citing threats to their long-term viability, regulatory shifts emerged as the most critical factor (42%).

Although nearly two-thirds (63%) of CEOs have taken significant steps to reinvent their businesses over the past five years, many companies lack the agility to adapt quickly. For example:

  • Resource Allocation: Half of the CEOs said they reallocate less than 10% of their financial and human resources annually.
  • Revenue Growth from New Ventures: On average, only 7% of revenue over the last five years has come from distinct new business models.

As CEOs explore reinvention, 38% reported entering at least one new sector in the past five years, with these ventures contributing over 20% of revenue for one-third of respondents.

“Emerging technologies, shifting geopolitics, and the climate transition are redefining how economies function,” said Mohamed Kande, Global Chairman at PwC. “To thrive, business leaders must act boldly and reinvent strategies, from workforce planning to supply chains and business models.”

Generative AI: A Mixed Picture

Generative AI remains a focal point of optimism for many CEOs. Over half (56%) report efficiency gains from AI over the past year, with 32% attributing revenue growth to its adoption. However, challenges persist:

  • Trust: Only 33% of CEOs express confidence in integrating AI into core processes.
  • Expectations vs. Reality: While 46% of CEOs expected profitability gains from AI in 2024, only 34% reported achieving them.

Looking forward, 49% of CEOs anticipate AI-driven profitability improvements in 2025, with plans to embed AI into technology platforms (47%) and core processes (41%) while developing new products and services (30%).

“This year’s survey shows a more mature view of GenAI,” noted Matt Wood, PwC’s Global CTIO. “CEOs are optimistic but increasingly aware of the challenges in realizing its full value.”

Climate Investments Show Returns

The climate transition continues to shape corporate strategies, with 33% of CEOs reporting revenue increases from climate-related investments—six times more frequent than reports of revenue declines (5%). Nearly two-thirds stated that such investments either reduced costs or had no significant financial impact.

However, regulatory complexity remains a major hurdle, cited by 24% of CEOs as the top barrier to climate-related investments. This challenge exceeds concerns about lower ROI (18%) or lack of internal support (6%).

Carol Stubbings, PwC’s Global Chief Commercial Officer, remarked: “This survey shows business leaders are balancing optimism about the economy with realism about the need to fundamentally reinvent how they create value to thrive in the future.”

The Road Ahead

While the survey highlights optimism about growth and confidence in emerging technologies like GenAI, it also underscores the imperative for reinvention. The path forward lies in balancing bold, forward-looking strategies with pragmatic responses to risks, whether macroeconomic, geopolitical, or regulatory.

With global CEOs focused on transformation and growth, the next decade will test their ability to adapt and innovate in an era defined by rapid technological advancements, climate imperatives, and shifting global dynamics.

European Central Bank Report Highlights Stable Inflation and Economic Outlook

by THEFUTURE.TEAM
October 29, 2025

Overview Of Inflation Trends

The latest European Central Bank survey shows a slight decline in median inflation expectations over the next 12 months, decreasing from 2.8% in August to 2.7% in September. Despite this minor adjustment, consumer perceptions of past 12-month inflation have held steady at 3.1% for the eighth consecutive month. Long-term projections for three- and five-year inflation remain stable at 2.5% and 2.2% respectively.

Consumer Expectations Drive Income And Spending Projections

Across the board, expectations for nominal income growth over the upcoming year have remained consistent at 1.1%. However, there is a noticeable shift in spending behavior: while perceived nominal spending growth for the past year slipped slightly to 4.9% from 5.0%, expectations for spending growth over the next 12 months rose to 3.5%. Notably, lower income groups continue to forecast marginally higher spending increases compared to their higher income counterparts.

Stability In Economic And Labour Market Outlook

Economic growth expectations are modestly pessimistic, with respondents forecasting a contraction of -1.2% over the next 12 months. Concurrently, anticipated unemployment levels remain unchanged at 10.7% a year ahead, though the outlook varies by income, with lower income households expecting unemployment rates as high as 12.7%, while higher income groups maintain expectations around 9.4%. Overall, the slight difference between current and future unemployment suggests a broadly stable labor market outlook.

Housing Market And Credit Conditions

The survey also reveals an upswing in expectations related to the housing market. Home price growth expectations have edged higher to 3.5%, and anticipated mortgage interest rates have risen modestly to 4.6%. Similar to other metrics, expectations vary by income, with lower income households expecting higher mortgage rates. In recent months, a marginal decline in reported credit tightening over the past 12 months contrasts with a renewed forecast of tighter credit conditions in the forthcoming year.

Conclusion

The ECB’s latest findings underscore the delicate balance between stable long-term economic forecasts and short-term adjustments in consumer expectations. The slight dips in inflation expectations, alongside stable perceptions of past inflation, delineate a marketplace that is both cautious and measured. As income, spending, and housing market metrics continue to evolve, these indicators provide critical insights for policymakers and investors navigating an increasingly complex economic landscape.

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