The PwC survey found that nearly two thirds of UK chief executives are optimistic about UK economic growth in the next 12 months, up from just 39% in 2023
Britain has overtaken Germany, China and India to become the second most appealing country for investment, trailing only America, according to PwC’s annual UK CEO survey.
This marks a major boost for Chancellor Rachel Reeves as the poll indicates that the UK has risen from being the fourth most crucial destination for investment last year.
The survey also suggests that top executives foresee a brighter economic future for Britain in 2025. The findings of the PwC survey, which were hailed as a “vote of confidence in the UK”, reveal that 14% of global CEOs believe the UK will attract the largest share of international investment, second only to the US, which stands at 30%.
Following behind are Germany with 12%, China with 9% and India with 7% in the top five. The survey discovered that nearly two-thirds (61%) of UK chief executives are optimistic about UK economic growth over the next 12 months, a significant increase from just 39% in 2023.
This comes amid mounting questions faced by Ms Reeves regarding sluggish UK growth, the impact of her recent Budget measures, and escalating UK debt levels. These concerns have led to a slump in the pound and a sharp spike in Government borrowing costs earlier this month.
Last week’s weaker-than-expected growth figures, which showed a paltry 0.1% expansion in November, have intensified fears of a stagnating economy. While the recent sell-off in UK Government bonds – also known as gilts – has subsided, experts fear the rout could resume on further disappointing data or unfavourable trade policies from new US President Donald Trump.
Marco Amitrano, senior partner of PwC UK, has hailed the findings of their CEO survey as a strong endorsement for the UK’s business environment: “Our CEO survey findings are a vote of confidence in the UK as a place for business and investment.
“The UK’s relative stability at a time of instability should not be underestimated, nor should its strength in key sectors including technology.
Reasserting Britain’s place on the global stage requires a tangible path to growth and a consistent Government approach to business and investment.”
Meanwhile, Ms Reeves, who is at the World Economic Forum in Davos, Switzerland, said: “These latest results show global CEOs are backing Britain and the UK is one of the most attractive destinations for international investment.
“And it’s this investment that will help drive economic growth and improve living standards across the UK.”
Despite concerns that her Budget proposals to increase wage costs might discourage hiring, the survey revealed a silver lining, with over half (53%) of UK CEOs planning to expand their workforce this year, an uptick from 48% in 2023. However, there appears to be a dip in the longer-term confidence among top executives, as only 57% of UK CEOs feel very optimistic about their company’s future over the next three years, down from 61% in the previous year’s survey.
British business leaders are reportedly at the forefront of embedding artificial intelligence (AI) into their companies, with a staggering 93% of CEOs claiming to have adopted the technology—a figure that eclipses last year’s 42% and surpasses the global rate of 83%. Nevertheless, just 36% of UK bosses anticipate AI will boost their profits in the coming year, which falls short of the 49% global expectation.
In contrast, a mere 14% of UK CEOs acknowledged a profit increase due to AI in the previous 12 months. “UK business has begun to move beyond the initial hype of GenAI to the reality of making it work – but that shouldn’t detract from its huge unrealised potential,” commented Mr Amitrano, highlighting the significant yet untapped promise AI holds for future business developments.
Revealing a commitment to innovation, the survey also found that an overwhelming 98% of UK business chiefs are planning substantial revisions to their business models to maintain a competitive edge. Data from the PwC survey, which took responses from 4,701 chief executives across 109 countries and territories between October 1 and November 8, 2024, reflects the readiness of UK businesses to adapt and evolve amidst the rapidly advancing AI landscape.
