Nearly 60 percent of global CEOs expect economic growth to accelerate in 2025, buoyed by optimism around emerging technologies and business reinvention, according to PwC’s 28th Annual Global CEO Survey, which was unveiled at the World Economic Forum.

The study, which polled 4,701 executives from 109 countries, reflects a sharp uptick in economic confidence, with growth expectations rising from 38 percent last year and just 18 percent two years ago.

Amid this optimism, 42 percent of CEOs plan to expand their workforce over the next year, far outpacing the 17 percent anticipating cuts. Sectors like technology, real estate, and pharma are particularly bullish, with more than half forecasting hiring increases.

However, macroeconomic challenges persist. Inflation and economic volatility remain the top concerns globally, while regional risks vary. Middle Eastern CEOs cite geopolitical conflict as a key threat, while cyber risks top the list in Western Europe.

Reinvention Vital to Long-Term Viability

While optimism runs high, 42 percent of CEOs warn that their companies may face obsolescence within a decade without significant reinvention. Over the last five years, nearly two-thirds have taken steps to reimagine how they create and deliver value. Yet, agility remains elusive — over two-thirds of companies reallocate less than 20 percent of budgets and resources annually.

“Emerging technologies, climate imperatives, and geopolitical shifts are reshaping business ecosystems,” said PwC’s Global Chairman Mohamed Kande in a statement. “To thrive, leaders must make bold strategic choices across people, supply chains, and business models.”

Generative AI Gains Traction

Generative AI is fueling optimism and action, with more than half of CEOs reporting efficiency gains and a third attributing revenue and profit increases to its implementation.

Notably, 49 percent expect profitability improvements from AI over the next year, up slightly from last year.

“GenAI’s potential is undeniable, but challenges like trust and integration remain,” said Matt Wood, PwC’s global commercial technology and innovation officer. “Leaders must focus on embedding AI into core processes while exploring its capacity to drive growth through innovation.”

Despite early fears of job displacement, more CEOs say GenAI has boosted headcount than reduced it.

Climate Investments Deliver Returns

Climate-related investments are proving profitable, with initiatives six times more likely to increase revenue than decrease it, the survey found. However, regulatory complexity remains the top barrier to broader adoption, cited by 24 percent of CEOs.

“Business leaders recognize the need to balance optimism with realism,” said Carol Stubbings, PwC’s global chief commercial officer. “As digitization and climate pressures accelerate, companies must reconfigure to create sustainable value.”

PwC’s findings underscore the growing urgency for companies to adapt as CEOs weigh optimism about growth against the necessity of transformative action in an evolving global landscape.

Also Read:

Asia Pacific Financial Firms Lag in Rigorous Climate Standards, PwC Finds