Tech optimism belies sluggish overall growth outlook
Despite qualified enthusiasm for investment in technology, expectations of global growth are subdued amid a challenging macroeconomic environment—only 28% expect moderate to significant improvement in global growth over the next year.
Zooming in from the global picture, investors believe the United States will be the most attractive destination for investment (67%) over the next three years, ahead of India (45%), Chinese Mainland (32%), the United Kingdom (26%) and the United Arab Emirates (26%).
While the US is ranked most attractive, US-based investors themselves are less likely than their counterparts elsewhere to expect global growth, underscoring a cautious baseline that varies by market.
Conservative expectations of growth can be partially explained by investors’ assessment of the threat landscape. More than half of respondents (55%) describe high or extreme exposure to cyber risk at the companies they invest in or cover, and nearly as many (53%) see the same in technological disruption. Inflation (44%), macroeconomic volatility (43%), and geopolitical conflict (42%) are also weighing on sentiment.
Business resilience and AI transparency as critical enablers
In an unpredictable landscape, investors are supporting companies that bolster their resilience, while making the most of tech-driven opportunities to deliver clear, transparent returns.
Investors support companies spending more on cybersecurity (88%), business model agility (73%), regulatory compliance (66%) and supply chain management (64%) to protect against key threats.
Business model agility is seen as a pathway to both resilience and growth. Roughly three-fourths (74%) of respondents expect higher growth from companies that pursue opportunities across traditional sector boundaries. At the same time, 65% see higher risk of disruption for companies that don’t.
The drive for resilience and growth extends to sustainability, with 84% of investors noting companies should maintain or increase their investment in climate adaptation. At the same time, 61% note they would at least moderately increase their own investment in companies using sustainability data for efficiency and performance.
Investors are also asking for more information about how management will deliver growth amid uncertainty. The biggest transparency asks are innovation strategies (47% of respondents), AI returns and cost savings (42%), AI investments (42%), competitive position (37%), and resilience strategies (29%).
Nadja Picard, Global Reporting Leader, PwC Germany, said:
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