On the day when Donald Trump is sworn in as the 47th President of the United States, a survey of global CEOs reveals they now see the UK as the second-most attractive global destination for international investment. This is the first time that the UK has secured this spot in the 28 years of its history, says PwC, which has just released its Annual Global CEO Survey.

This shift in global attitude towards the UK comes at a time when CEOs the world over are looking at new sectors and markets - more than a third said they had started to compete in new sectors in the last five years to stay competitive, according to PwC.

The UK has moved up from ranking fourth globally in the same survey the previous year. It now trails only the US , with 14% of global CEOs' saying the UK will receive the greatest proportion of planned international capital expenditure. The United States leads the top five investment destinations with 30%, followed by the UK (14%) Germany (12%), China (9%) and India (7%)

“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. ” said Marco Armitano, PwC senior partner. “However, there is no room for complacency. Reasserting Britain’s place on the global stage requires a tangible path to growth and a consistent government approach to business and investment. Business is playing its part - with two thirds of UK CEOs developing new business capabilities or operating models in the pursuit of growth.” he added.

Looking at outward investment interest, UK CEOs have shifted their international priorities this year. While the United States, Germany and France remain the top three destinations, consistent with last year’s trend, there have been notable changes elsewhere, according to the survey. Investment interest in China has fallen dramatically. Conversely, interest in Australia has seen a marked increase. PwC suggests these shifts underscore “a recalibration of global strategies” as CEOs adapt to evolving risks and opportunities in international markets.

UK CEOs remain ahead on GenA! adoption compared with their global counterparts, according to the survey. There has been a two-fold increase in GenAI adoption by UK businesses since last year’s survey. Some 93% of UK CEOs say their firms have now adopted the technology to some extent, compared with 42% the previous year. The adoption rate among global CEOs is 83%, says PwC.

But, although 49% of CEOs globally expect GenAI to increase profitability in the next 12 months, only 36% of UK CEOs share the same confidence. PwC suggests this may be based on the experience so far - only 14% of UK business leaders have seen profitability improvements from GenAI over the last year, compared to 34% of CEOs globally.  But it notes that more than half (53%) of UK CEOs report that GenAI has already enhanced employee efficiency, while 40% say it has improved their own time management. 

UK Prime Minister Keir Starmer laid out a vision earlier this month for the country to become a world leader in AI..

On the anxiously watched issue of economic growth at an uncertain and volatile time, the survey finds that some 61% of UK CEOs are optimistic about UK economic growth in the next 12 months (up from 39% in 2023), and are also positive about the global outlook (64% expect this to improve, compared with 58% of CEOs globally). 

Longer-term confidence in the UK in their own businesses however has declined slightly since the previous survey, with 57% of UK CEOs feeling very positive about their organisation’s prospects over three years, compared with 61% in last year’s survey.  

PwC suggests that this may explain why transformation remains high on the CEO agenda. Some 98% of business leaders are anticipating material changes to their business model to stay competitive, it says, with 66% focusing on developing new capabilities and 65% developing new business capabilities or operating models to address new markets or create new offerings .

Workforce investment continues to be central, with 70% focused on retaining talent, 62% recruiting for new skills, and 53% reskilling existing teams.

Some 87% of UK CEOs say they have initiated climate-friendly investments in the past five years. While 38% of these business leaders report revenue gains from these initiatives, 39% have seen increased costs. 

Despite challenges, sustainability is being embedded into decision-making the survey finds, with over half of CEOs now tying executive compensation to sustainability metrics.

The coming weeks will give global CEOs and international investors a clearer indication perhaps, of where the two leading destinations for international investment diverge, and where they come together. The International Monetary Fund (IMF) has also just upgraded its forecast slightly for the UK economy, and now expects it to grow by 1.6% in 2025, up from an earlier forecast of 1.5%..

Main image : Riccardo Annandale @Unsplash