World Economic Forum 2018: Optimism in global economic growth soars

With global growth on the upswing, business leaders are increasingly more upbeat about the prospects of the world economy.

Fifty-seven per cent of business leaders surveyed by PwC say global growth will improve in the coming 12 months. This is roughly twice the level seen last year.

This rise in optimism is in turn boosting confidence over business prospects, with 42 per cent of chief executive officers surveyed saying they are “very confident” of their organisations’ growth prospects over the next 12 months, up from 38 per cent last year. 

The US retains its position as the most attractive market, followed by China, Germany, and the UK. India bumps Japan as the fifth-most attractive market in 2018. 

Confidence over business prospects in turn is likely to fuel job growth, with 54 per cent of CEOs planning to increase their headcount in 2018 (2017: 52 per cent). Only 18 per cent of CEOs expect to reduce their headcount. Healthcare, technology, business services, communication and hospitality and leisure are the sectors witnessing the greatest demand for new recruits. 

But while CEOs are optimistic than before, they remain mindful of looming threats, principal among them are geopolitical uncertainty, cyber threats, terrorism, availability of key skills and populism. 

The survey spanned 85 countries, interviewing 1,293 CEOs between August and November last year. The sample was weighted by national GDP to ensure that CEOs’ views were fairly represented across all major countries.