Belgian CEOs see global economic growth but stagnation in Belgium
CEOs risk missing the AI boat due to lack of upskilling
20 January 2025
Despite the ongoing threat of conflicts and rising protectionism, 3 out of 5 CEOs remain optimistic about the global economic outlook. They foresee increased hiring and continued rollout of AI. This sentiment is shared by Belgian CEOs, although they are much more optimistic about the global than the Belgian economy.
- 60% of CEOs worldwide expect economic growth, a significant increase compared with recent years. In 2024, this figure was only 38%, and the year before, a mere 18%. Belgian CEOs anticipate similar global economic growth rates as their international counterparts. They are less positive about their domestic economy, however, with only 1 in 3 (34%) expecting growth in Belgium. This figure is in line with last year, suggesting that Belgian CEOs have become much more optimistic about the global but not the Belgian economy.
- More than 4 out of ten overall expect to increase staff, while fewer than 2 of out 10 anticipate downsizing. Interestingly enough, despite recent news of record layoffs and bankruptcies, the Belgian results are in line with these trends: 1 in 3 (34%) plan additional hires, while only 1 in 8 (13%) foresee further redundancies.
- A survey without AI seems almost impossible. According to PwC’s survey, 56% of companies report increased efficiency thanks to AI, with 1 in 3 experiencing higher profitability and revenues. While specific Belgian figures are unavailable, the trends in the country appear to follow suit.
- Innovation is critical, with 4 in 10 CEOs globally believing their company will not survive the next decade without innovation. In Belgium, this figure rises to just over half (53%).
- Recent reports on the climate show the importance of investing in sustainability, and the hard data support that this is a successful strategy. Investments in sustainability worldwide were six times more likely to increase revenue than reduce it.
Professional service provider PwC surveys several thousand business leaders every year to gauge expectations for the year ahead. This year, the global survey included around 4,700 business leaders from 109 countries. Of these, 42% anticipate hiring at least 5% more staff, a slight increase compared with 2024. The figures in Belgium are slightly lower, with 34% planning to hire and 13% expecting redundancies, but the balance remains positive.
The largest increases are expected in companies with revenues up to $100 million, particularly in the technology and real estate sectors, where 61% plan to hire more staff. Similarly, the pharma (52%) and life sciences (51%) sectors are also set to see a majority of leaders planning to expand their workforce.
Despite this rosy outlook, macroeconomic volatility (29%) and inflation (27%) remain the biggest concerns. There are regional differences. The top risks in the Middle East (41%) and Central and Western Europe (34%) are geopolitical conflicts. In Western Europe, macroeconomic volatility (29%) is the primary concern, followed by cyber risks (27%), a lack of skilled labour (25%), and inflation (24%). In Belgium, the CEOs are most concerned about macroeconomic volatility (44%) and inflation (38%).
“It seems that Belgian business leaders see the rest of the world moving forward while feeling that we are standing still or not evolving quickly enough,” said Patrick Boone, Chairman of PwC Belgium. “One bright spot is that more CEOs are still planning to hire rather than downsize, despite a record negative year in 2024. The gloomy outlook nonetheless calls for a stable entrepreneurial climate finally to be established at long last in Belgium. The federal negotiating parties have a significant role in addressing the two biggest concerns for business leaders in our country: macroeconomic volatility and inflation.”
Reinvention is a must
For several consecutive years, 4 in 10 CEOs have believed that their companies will not survive the next decade without significant changes (42% globally, 44% in Belgium). However, CEOs are taking action: Half of Belgian CEOs reported entering new sectors or industries over the past five years (38% globally). 47% have developed innovative products or services (38% globally). 44% have re-evaluated their pricing strategies (24% globally). Globally, companies that undertook more initiatives to reinvent themselves in the past five years have also reported higher revenues.
In Belgium, 4 out of 10 CEOs saw revenue generated from completely new business (41%). Expanding existing operations (78%) and core business activities (94%) remain the most reliable sources of revenue.
AI looks promising but needs to prove its worth
With three-quarters of CEOs incorporating generative AI into their business in the past year (75%, 83% globally), the technology appears to be well-integrated. Globally, more than half of CEOs (56%) reported efficiency gains among staff, and one-third saw revenue growth attributed to AI. Some CEOs remain underwhelmed, however. Last year, 46% anticipated increased profits from AI, but only 32% actually did.
Trust in AI remains a barrier to broader adoption. Around 3 in 10 CEOs are confident enough in the technology to use it in their company’s core processes (33% globally, 28% in Belgium).
Nevertheless, this does not dampen enthusiasm completely. Nearly half (49%) hope to boost profitability through AI this year. Almost as many CEOs (47% globally, 53% in Belgium) expect AI and generative AI to become part of their technology platforms within the next three years. Four in ten (41% globally and in Belgium) foresee AI playing a role in their core processes, and 3 in 10 (30%, 28% in Belgium) plan to develop new products or services with AI.
A more mature outlook for AI?
The impact of AI on staffing appears to be manageable. Globally, more CEOs report hiring additional staff due to AI (17%) than those making redundancies (13%). CEOs may not be fully leveraging the potential of their workforce however. Only around one-third (31% globally, 38% in Belgium) plan to integrate AI into their employment strategies. This raises questions, as the value of AI can be realised only when employees understand how and when to use it effectively, while also learning to navigate potential pitfalls.
Moreover, two-thirds of Belgian CEOs (65.5%) plan to upskill only a quarter of their workforce at most over the next 12 months. In just one-quarter of companies, at least half of the workforce will receive training. Belgian CEOs appear less convinced of the need to provide new skills to their workforce compared with last year. There has been a significant increase (+13%) in the number of CEOs who believe that most of their staff will not require new skills in the next three years.
It would appear that CEOs remain optimistic about the opportunities that AI holds in store but are increasingly aware of the challenges of maximising its potential in their businesses. Confidence has fallen by nearly 19.8% in the belief that AI will fundamentally contribute to value creation or competitiveness within the next three years.
Investing in sustainability pays off
When asked about the financial impact of sustainability investments over the past five years, 1 in 3 CEOs globally (33%) reported increased revenue as a result. Only 5% indicated a negative impact. Moreover, two-thirds of CEOs said such investments either reduced costs or had no impact on costs.
Whereas the outcomes of these investments are positive, initiating them remains challenging. Complex regulations are the biggest obstacle (24%), preventing companies from starting projects. A low ROI (18%) or lack of management engagement (6%) are cited far less frequently.“The results clearly show that investing in the two metatrends of the moment – AI and sustainability – pays off. The lead of Anglo-Saxon countries in AI is already significant. It would be unfortunate if Belgian CEOs waited too long to jump on board. Investing in one’s workforce is critical, and this is an opportunity we collectively risk missing,” concludes Patrick Boone, Chairman of PwC Belgium.