Over 40% of CEOs across globe confident that economy will improve

Confidence in the recovery of the global economy grew last year, with 44% of international business leaders feeling economic conditions will improve in 2014; more than twice as many at the end of 2012.

The latest annual survey of global chief executives, by professional services giant PricewaterhouseCoopers, also shows that half of CEOs, worldwide, plan to increase their staff sizes during the coming year.

Just shy of 40% of respondents said they are “very confident” of their company’s ability to grow revenues. Confidence surrounding short-term revenue growth was most pronounced amongst Middle Eastern CEOs, while their counterparts in western Europe are the most confident about short-term global economic prospects.

By industry, those most optimistic can be found in the hospitality/leisure sector; followed by those in banking/capital markets, retail, financial services, asset management, engineering, and construction.

“CEOs have begun to regain confidence. They’ve successfully guided their companies through recession and now more feel positive about their ability to increase their revenues and prospects for the global economy.

“However, CEOs also acknowledge that generating sustained growth in the post-crisis economy remains a challenge, especially as they deal with changing conditions like slowing growth in the emerging markets,” said Dennis Nally, PwC International chairman at the survey’s launch at the opening of the World Economic Forum in Davos.

Speaking about Ireland, Ronan Murphy, senior partner at PwC Ireland, said: “Similar to the findings of the global survey, Ireland is also showing signs of an improvement in economic conditions with growing confidence in business and investment.

“Notwithstanding certain ongoing challenges, Ireland has significant potential for growth in indigenous business exports as well as opportunities for further foreign direct investment.”

The latest global fund manager survey, from Bank of America Merrill Lynch, found 75 % of investors believed the global economy would strengthen this year.