BRITISH chief executives are increasingly confident about the prospects for global economic growth this year but a growing number also expect to slash jobs at home in the face of Brexit turmoil.
According to PwC's CEO survey, which quizzed nearly 200 British bosses, 36 per cent believe global economic growth will improve in 2018, compared to 17 per cent last year.
This is the most confident bosses have been since 2015, and represents "resilience in uncertain times", the accountancy giant declared.
The development came as the International Monetary Fund said it expected Donald Trump's tax reforms and strong growth in Europe to spur the global economy this year but, in contrast, it downgraded Britain's prospects for the year it will quit the EU.
As the global elite descened on Davos for the World Economic Forum this week, the Washington-based body welcomed the "broadest synchronised global upsurge since 2010".
The PwC study found almost nine in 10 UK bosses were optimistic about their organisation's growth prospects in 2018, in line with their global counterparts, with almost all expecting revenue to increase.
This, the study said, could reflect comfort in the prospect of a two-year Brexit transition period, despite wider concerns over the outcome of trade negotiations.
However, the number of UK business leaders who described themselves as "very confident" dipped from 41 per cent last year to 34 per cent now.
In addition, the number expecting to increase headcount fell to 54 per cent from 63 per cent last year, and 15 per cent expected to cut jobs, up from to 10 per cent in 2017.
The collapse in sterling following the Brexit vote has ramped up costs for British businesses and several cost-cutting programmes have been launched by big corporates.
To compound matters, the lack of clarity from Theresa May's Government over future trading relations with the EU has meant firms cannot plan for the future with any certainty.
The net result has been a sharp slowdown in Britain's economic growth, while eurozone and global growth races ahead.
"While optimism remains high, the PwC CEO Survey findings suggest businesses are braced for more challenging times ahead," PwC said.
Kevin Ellis, chairman and senior partner at PwC, added: "Robust confidence levels among UK CEOs points to resilience in uncertain times but this is tempered by a big dose of realism about the challenges ahead.
"Brexit uncertainty, regulation, availability of skills and cyber are key concerns, but business leaders remain confident they can navigate through them," he added.
The total survey saw 1,293 global bosses across 85 countries probed for their views on economic growth ahead of the Davos forum.
Despite Brexit uncertainty, global chiefs identified the UK as the fourth most important country for their firm's growth behind the US, China and Germany.
The IMF in its latest World Economic Outlook upgraded its forecasts for the world economy by 0.2 per cent to 3.9 per cent for 2018 and 2019.
Christine Lagarde, its managing director, said: “All signs point to a further strengthening[of global growth] both this year and next. This is very welcome news.”
The IMF expects US growth to accelerate to 2.7 per cent this year, from 2.3 per cent in 2017, citing increased investment as businesses take advantage of lower corporate tax rates.
Mr Trump signed a $1.5 trillion tax overhaul into law late in 2017, cutting tax rates for businesses and also offering temporary cuts for some individuals and families. It includes slashing corporation tax in the US from 35 per cent to 21 per cent.
However, the UK's growth outlook has been slashed from 1.6 per cent to 1.5 per cent for 2019, the year of Brexit.
For 2018, the IMF is forecasting UK growth at 1.5 per cent but prospects for Germany, France, Italy and Japan were all upgraded.
The 19-country eurozone saw growth last year of 2.4 per cent, the best since the financial crisis, and will bounce 2.2 per cent in 2018, the IMF said.
The organisation has previously said that Brexit uncertainty and the inflationary squeeze on household spending power will put the brakes on the UK economy.
It said firms are likely to continue deferring investment decisions until there is greater clarity on the UK's future trading relationship with the European Union.
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