How do business leaders see the global economy unfolding in 2025?

As Donald Trump settles in to his old home at the White House, with uncertainty over tariffs and other policies remaining, global business and finance leaders are meeting in Davos for the annual World Economic Forum meeting.

There is much to discuss, given the economic challenges of recent years, the new US administration, and concerns about the global economy. But a survey of CEOs launched at the event by PwC reveals optimism despite the potential headwinds.

Sixty percent of respondents expect global growth over the next 12 months, up from just 38% a year ago and 18% in 2023. And 42% are expecting to increase their headcount by at least 5% while just 17% expect to decrease headcount. Optimism is highest among firms (less than US$100 million) and those in technology, real estate, private equity, and pharma and life sciences.

However, among the almost 5,000 business leaders across 109 countries and territories that were polled, there was concern about macroeconomic volatility (29%) and inflation (27%) with North American respondents at about the average percentages.

CEOs also realise that they must embrace change including AI, with 42% of respondents believing their company will not be viable beyond the next decade if it continues on its current path. Around four in ten say they have begun competing in at least one new sector in the last five years.  

"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. “Emerging technologies such as GenAI, shifts in geopolitics, and the climate transition are all revolutionising how the economy works. New business ecosystems are forming, transforming how companies compete and create value. To thrive, business leaders must act now and take bold decisions around their strategy – ranging from people, footprint and supply chain, right through to reinventing their business model."

Climate investments

There is growing concern about climate investments, with major Wall Street banks and the world’s largest asset manager having left the Net Zero Banking Alliance and an ESG backlash.

But the survey found that business that made climate investments in the last five years were six times more likely to have resulted in increased revenue (33%) than decreased revenue (5%). Respondents cited regulatory complexity in initiating climate investments as their biggest barrier, above lower returns on investment (18%) or lack of buy-in from management or the board (6%).

"Three-plus decades of digitisation have started to break down formerly impermeable boundaries between sectors, while the combined impact of the climate transition, AI, and other megatrends will hasten the process of reconfiguration,” said Carol Stubbings, global chief commercial officer, PwC. “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."