Now playing
02:05
The challenges facing globalization
Passengers look out at American Airlines flight 718, a Boeing 737 Max, parked at its gate at Miami International Airport as people load for the flight to New York on December 29, 2020 in Miami, Florida. The Boeing 737 Max flew its first commercial flight since the aircraft was allowed to return to service nearly two years after being grounded worldwide following a pair of separate crashes. (Photo by Joe Raedle/Getty Images)
Passengers look out at American Airlines flight 718, a Boeing 737 Max, parked at its gate at Miami International Airport as people load for the flight to New York on December 29, 2020 in Miami, Florida. The Boeing 737 Max flew its first commercial flight since the aircraft was allowed to return to service nearly two years after being grounded worldwide following a pair of separate crashes. (Photo by Joe Raedle/Getty Images)
PHOTO: Joe Raedle/Getty Images
Now playing
03:15
Airlines & TSA boost security ahead of Inauguration
Philanthropist Chief Executive Officer of Las Vegas Sands Sheldon Adelson listens to US President Donald Trump address to the Israeli American Council National Summit 2019 at the Diplomat Beach Resort in Hollywood, Florida on December 7, 2019. (Photo by MANDEL NGAN / AFP) (Photo by MANDEL NGAN/AFP via Getty Images)
Philanthropist Chief Executive Officer of Las Vegas Sands Sheldon Adelson listens to US President Donald Trump address to the Israeli American Council National Summit 2019 at the Diplomat Beach Resort in Hollywood, Florida on December 7, 2019. (Photo by MANDEL NGAN / AFP) (Photo by MANDEL NGAN/AFP via Getty Images)
PHOTO: Mandel Ngan/AFP/Getty Images
Now playing
03:14
Major GOP donor and casino magnate Sheldon Adelson dies
Democratic presidential candidate and former US Vice President Joe Biden speaks on the state of the US economy on September 4, 2020, in Wilmington, Delaware. (Photo by JIM WATSON / AFP) (Photo by JIM WATSON/AFP via Getty Images)
Democratic presidential candidate and former US Vice President Joe Biden speaks on the state of the US economy on September 4, 2020, in Wilmington, Delaware. (Photo by JIM WATSON / AFP) (Photo by JIM WATSON/AFP via Getty Images)
PHOTO: JIM WATSON/AFP/Getty Images
Now playing
02:02
Why Wall Street is hopeful about Biden despite economic challenges
Now playing
05:39
Ben & Jerry's calls for Trump's removal
This illustration picture shows the social media website from Parler displayed on a computer screen in Arlington, Virginia on July 2, 2020. - Amid rising turmoil in social media, recently formed social network Parler is gaining with prominent political conservatives who claim their voices are being silenced by Silicon Valley giants. Parler, founded in Nevada in 2018, bills itself as an alternative to "ideological suppression" at other social networks. (Photo by Olivier Douliery/AFP/Getty Images)
This illustration picture shows the social media website from Parler displayed on a computer screen in Arlington, Virginia on July 2, 2020. - Amid rising turmoil in social media, recently formed social network Parler is gaining with prominent political conservatives who claim their voices are being silenced by Silicon Valley giants. Parler, founded in Nevada in 2018, bills itself as an alternative to "ideological suppression" at other social networks. (Photo by Olivier Douliery/AFP/Getty Images)
PHOTO: Olivier Douliery/AFP/Getty Images
Now playing
03:49
Parler sues Amazon in response to being deplatformed
Panasonic
Panasonic's Augmented Reality Heads-up Display
PHOTO: Panasonic USA
Now playing
01:06
This tech gives drivers directions on the road in front of them
PHOTO: Wimkin
Now playing
03:18
The online warning signs of the violent Capitol siege
PHOTO: Twitter
Now playing
02:39
Twitter permanently suspends Donald Trump from platform
PHOTO: CNN
Now playing
03:56
'What are we supposed to do?': Rioter speaks to CNN reporter
President Donald Trump arrives to speak at a rally protesting the electoral college certification of Joe Biden as President, Wednesday, Jan. 6, 2021, in Washington. (AP Photo/Evan Vucci)
President Donald Trump arrives to speak at a rally protesting the electoral college certification of Joe Biden as President, Wednesday, Jan. 6, 2021, in Washington. (AP Photo/Evan Vucci)
PHOTO: Evan Vucci/AP
Now playing
01:38
Facebook blocks Trump through end of presidency
PHOTO: CNN
Now playing
02:56
CNN speaks to Trump supporters about Trump's election lies
NEW YORK, NY - JUNE 3: The Google logo adorns the outside of their NYC office Google Building 8510 at 85 10th Ave on June 3, 2019 in New York City. Shares of Google parent company Alphabet were down over six percent on Monday, following news reports that the U.S. Department of Justice is preparing to launch an anti-trust investigation aimed at Google. (Photo by Drew Angerer/Getty Images)
NEW YORK, NY - JUNE 3: The Google logo adorns the outside of their NYC office Google Building 8510 at 85 10th Ave on June 3, 2019 in New York City. Shares of Google parent company Alphabet were down over six percent on Monday, following news reports that the U.S. Department of Justice is preparing to launch an anti-trust investigation aimed at Google. (Photo by Drew Angerer/Getty Images)
PHOTO: Drew Angerer/Getty Images North America/Getty Images
Now playing
03:25
Google employee on unionizing: Google can't fire us all
FILE - In this undated file photo issued by the University of Oxford, a researcher in a laboratory at the Jenner Institute in Oxford, England, works on the coronavirus vaccine developed by AstraZeneca and Oxford University. Britain on Wednesday, Dec. 30, authorized use of a second COVID-19 vaccine, becoming the first country to greenlight an easy-to-handle shot that its developers hope will become the "vaccine for the world." The Department of Health said it had accepted a recommendation from the Medicines and Healthcare Products Regulatory Agency to authorize the vaccine developed by Oxford University and U.K.-based drugmaker AstraZeneca.  (John Cairns/University of Oxford via AP, File)
FILE - In this undated file photo issued by the University of Oxford, a researcher in a laboratory at the Jenner Institute in Oxford, England, works on the coronavirus vaccine developed by AstraZeneca and Oxford University. Britain on Wednesday, Dec. 30, authorized use of a second COVID-19 vaccine, becoming the first country to greenlight an easy-to-handle shot that its developers hope will become the "vaccine for the world." The Department of Health said it had accepted a recommendation from the Medicines and Healthcare Products Regulatory Agency to authorize the vaccine developed by Oxford University and U.K.-based drugmaker AstraZeneca. (John Cairns/University of Oxford via AP, File)
PHOTO: John Cairns/University of Oxford/AP
Now playing
02:36
AstraZeneca vaccine provides 'logistical convenience'
President Donald Trump
President Donald Trump's name appears on a stimulus check on May 3, 2020.
PHOTO: Will Lanzoni/CNN
Now playing
03:05
Here's what the new stimulus package means for Americans
PHOTO: Branislav Nenin/Shutterstock
Now playing
02:27
Is working from home the new normal?
(CNN Business) —  

Rising populism, policy uncertainty and trade conflicts have led to a sharp drop in confidence among global CEOs.

The share of chief executives who think the global economy will slow over the next year has jumped to nearly 30% from 5% in 2018, according to a survey of 1,300 top business leaders by audit giant PwC.

The wave of pessimism extends to company earnings. Just 35% of CEOs said they are “very confident” about their growth prospects over the next 12 months, a sharp decline from 42% last year.

“CEOs’ views of the global economy mirror the major economic outlooks, which are adjusting their forecasts downward in 2019,” Bob Moritz, global chairman at PwC, said in a statement. “With the rise of trade tension and protectionism it stands to reason that confidence is waning.”

The report was published to coincide with the annual meeting of the World Economic Forum in Davos, Switzerland, where chief executives rub shoulders with central bankers, politicians and regulators. One major topic of discussion this year is the global economic slowdown and its implications for companies and governments.

CEO stress

PwC said there was “broad consistency” in what keeps corporate leaders awake at night. CEOs around the world cited policy uncertainty, potential shortages of skilled workers and over-regulation as major risks.

While trade conflicts worry company bosses around the world, CEOs in the United States and China are particularly concerned by the confrontation between their two countries.

In North America, 44% of CEOs are “extremely concerned” about trade conflicts, compared to 38% in Asia-Pacific, the PwC survey showed.

Many companies are adjusting their strategies as a result.

Over 60% of Chinese CEOs who said they were “extremely concerned” about the trade war are already adjusting their supply chain and sourcing strategy. Roughly four in 10 are shifting production and delaying capital expenditures.

“China’s CEOs stand out as the most proactive and vigorous in pulling every lever,” said PwC.

Investment shift

Business leaders in China are also rethinking their focus on the United States. While 59% of Chinese CEOs said last year that the United States was the most important foreign market for their company’s growth, that number dropped to 17% this year.

“The turn away from the US market and shift in Chinese investment to other countries are reactions to the uncertainty surrounding the ongoing trade dispute between the United States and China,” said Moritz.