Confidence in the global economy has remained broadly stable heading into 2026, but chief executives are increasingly pessimistic about their own companies’ ability to grow revenues, according to a survey published Monday by PricewaterhouseCoopers (PwC).
The survey, conducted among 4,454 CEOs in 95 countries ahead of the annual meeting of the World Economic Forum in Davos, found that 61% of executives expect global economic growth in 2026, a figure largely unchanged from last year.
However, confidence in revenue growth has dropped to its lowest level in a decade. Only 30% of CEOs said they were confident their organizations would increase revenues in the coming year, down from 38% in 2025.
“On the one hand, CEOs express confidence in the global economy’s ability to grow in 2026,” said Doron Sadan, managing partner at PwC Israel. “On the other hand, there is growing caution about organizations’ ability to increase revenues and profitability in an environment of macro-economic volatility, tariff threats, and geopolitical risks.”
The steepest decline in confidence was recorded in China, where short-term revenue optimism fell from 27% last year to just 5%, amid ongoing tensions with the United States. The oil and gas sector saw the sharpest sector-wide drop in growth confidence, while the technology sector experienced only a modest decline.
Despite concerns over revenues, confidence in local economies remains high in several regions. In Africa and the Middle East, 81% and 88% of CEOs, respectively, reported confidence in domestic economic conditions.
In Israel, PwC said local CEOs appear more optimistic than many of their global counterparts. “Our sense is that local CEOs’ confidence in their companies is at a better level than that of their peers worldwide,” Sadan said, citing expectations of accelerated growth and relatively low inflation.
At the same time, he warned that geopolitical instability and the prospect of elections remain key challenges, saying the task of the current and next governments would be to “create a business environment with high certainty and geopolitical stability that allows the Israeli economy to realize its growth potential.”
Widespread adoption of AI tools across the board
The survey also found widespread adoption of artificial intelligence across organizations. Sixty-nine percent of CEOs said their corporate culture supports AI implementation, but most have yet to see a clear financial payoff. Only 30% reported increased profits from AI use, while 56% said they had not identified any business benefits so far.
“The data show we are in the midst of a transition—from experimentation to full integration—where AI becomes part of the organizational core and reshapes business models,” Sadan said. He added that Israeli companies hold an advantage due to “entrepreneurial talent capable of turning AI capabilities into a real business edge.”
AI adoption is also expected to affect employment patterns. Around half of CEOs anticipate a reduction in junior-level roles, while employment at senior and mid-level positions is expected to remain relatively stable.
On mergers and acquisitions, 46% of CEOs said they do not expect to pursue major acquisitions over the next three years. However, 41% said they plan at least one significant deal, with technology identified as the most attractive sector.
“After two years of a decline in the number of deals, though not in their overall value, we expect to see a meaningful increase in M&A activity by both local and foreign investors,” Sadan said.
Macro-economic volatility remains the top risk facing CEOs, cited by 31% of respondents. Cybersecurity threats ranked second, overtaking inflation, while tariffs emerged as a new major concern, with 20% of CEOs identifying them as a significant risk. Nearly a third said tariffs could reduce profit margins in 2026.
Looking ahead, only about half of CEOs plan to make international investments in the coming year. The United States was cited as the most attractive destination, followed by Germany, India, the United Kingdom, and China.