Growth doubts

The mood in the boardrooms of German companies remains tense. The latest PwC Global CEO Survey shows that German CEOs continue to be much more cautious about the economic outlook than their international counterparts. Growth expectations remain low, while transformation and technology issues are high on the agenda.

The 29th Global CEO Survey is based on responses from 4,454 CEOs from 95 countries, including 93 executives from Germany. 22 percent of these German CEOs, slightly more than in the previous year (16 percent), say they expect their companies to see revenue growth in the coming twelve months. Globally, 30 percent of CEOs expect to increase their revenues in the next twelve months.

Parallel to the subdued growth expectations, the topic of transformation is coming into focus. For 57 percent of German CEOs (42 percent globally), the most pressing question is whether they are transforming their companies quickly enough to keep pace with rapid technological change. The introduction and scaling of artificial intelligence plays a particularly central role in this context. In Germany, only 11 percent report higher revenues from AI (29 percent globally) and 16 percent report cost reductions from AI (26 percent globally). At the same time, 63 percent of German CEOs expect junior positions to be cut due to AI (49 percent globally).

Forty-two percent of CEOs worldwide say their companies have started to build business activities outside their own sector or tap into new markets in the past five years. In Germany, this figure is as high as 52 percent.

In addition to growth and transformation, risks continue to shape CEOs' assessments. 27 percent of German CEOs (29 percent globally) expect trade conflicts and tariffs to have a negative impact on their net profit margins in the coming year. CEOs see cybersecurity as the greatest risk (Germany 34 percent, globally 31 percent), followed by macroeconomic volatility (Germany and globally 31 percent) and geopolitical tensions (Germany 25 percent, globally 23 percent).

Despite the generally skeptical attitude, Germany remains an important investment location internationally. In a global comparison, the country continues to rank among the most attractive target countries for investment. 13 percent of CEOs worldwide plan to invest in Germany in the next twelve months.

More information on the results of the Global CEO Survey can be found here.