More global CEOs believe world economic growth will improve as concerns about inflation and macroeconomic volatility fall, according to PwC’s Global CEO Survey. The research found that 38% of CEOs are now optimistic about global economic growth prospects over the next 12 months, up from 18% in a similar survey in 2023. However, the confidence is fragile; 45% do not believe their business will be viable in a decade without reinvention, up from 39% in 2023.

In addition, CEOs are somewhat less confident than last year regarding their own company’s prospects for revenue growth over the next 12 months, down to 37% from 42%. They also expect more pressure over the next three years than they experienced over the previous five from technology, climate and several other megatrends.

“As business leaders are becoming less concerned about macroeconomic challenges, they are becoming more focused on disruptive forces within their industries,” Bob Moritz, global chair at PwC, said in a press statement.

“Despite rising optimism about the global economy, they are actually less optimistic than last year about their own revenue prospects, and more acutely aware of the need for fundamental reinvention of their business,” Moritz said. “Whether it is accelerating the roll-out of generative AI or building their business to address the challenges and opportunities of the climate transition, this is a year of transformation.”

The report found that CEOs in most regions are more likely to be optimistic about domestic economic prospects than pessimistic. However, 31% of CEOs in North America expect their domestic economies to improve, while 52% expect it to decline.

Meanwhile, CEOs are more likely to plan increases rather than decreases to their headcount in the next 12 months; 39% expect to increase their headcount by 5% or more, according to the report.

For the report, PwC surveyed 4,702 CEOs across 105 countries and territories between Oct. 2 and Nov. 10, 2023.