The United Kingdom has been named the world’s second most attractive country for investment, according to a new survey of CEOs worldwide. The 26th PwC CEO Survey shows the UK climbing two spots from last year, now trailing only the United States.
A Historic Milestone for the UK
This is the first time in the survey’s 28-year history that the UK has landed in second place. According to Marco Amitrano, senior partner at PwC UK:
“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.”
Key Numbers
- 14% of CEOs chose the UK as the top destination for future investment
- 30% chose the US, while Germany followed at 12%
- China trailed at 9%, and India at 7%
Confident CEOs at Home
A striking 61% of UK-based CEOs say they feel optimistic about Britain’s economic growth over the next year, up from 39% in late 2023. They are also slightly more hopeful about the global outlook, with 64% holding a positive view—compared to 58% worldwide.
However, optimism fades when CEOs consider a longer horizon. Only 57% express high confidence in their firms’ prospects over the next three years, down from 61% previously.
The Bigger Picture: Mixed Signals
It’s worth noting that many recent economic surveys, including those by the Bank of England, point to concerns over the UK government’s tax hikes, rising employment costs, and increased regulation. Firms often plan to raise prices and cut costs where possible.
Changing Investment Targets
- Interest in China among UK CEOs has dropped significantly.
- Australia has seen a surge in popularity.
- Over a third of surveyed CEOs report moving into new sectors within the past five years to maintain competitiveness.
Embracing Generative AI
Two-thirds of UK CEOs are investing in new business models or capabilities, such as generative AI, to drive growth. Although global CEOs seem more bullish on AI’s short-term profitability gains—49% anticipate a profitability boost—only 36% of UK CEOs share this view.
“While many UK businesses have adopted GenAI to some degree, those degrees will vary enormously,” Amitrano explains. “We’re moving beyond the initial hype to the reality of making AI work—but its unrealised potential remains huge.”
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