European mid-sized companies are showing resilience and continue to look ahead, despite a complex mix of economic and geopolitical challenges. This is the conclusion of the latest edition of the International Business Report (IBR) by Grant Thornton, a large-scale survey conducted among more than 4,000 companies worldwide.
Economic pressure, but confidence holds firm
Although the global economy is under considerable pressure due to international tensions and the possible reintroduction of U.S. import tariffs, business confidence among European leaders remains largely stable. In fact, 59% of executives express confidence in the economic outlook for the year ahead. This is especially noteworthy given their awareness of the looming risks.
Leslie Van den Branden
“The fact that European business leaders maintain a relatively stable level of confidence, despite a cocktail of uncertainties — from geopolitical tensions to looming trade barriers — shows that many companies have learned to operate in an unpredictable environment,” says Leslie Van den Branden, Managing Partner at Grant Thornton Belgium. “In the mid-market segment, we see a growing awareness that agility and scenario planning are no longer luxuries, but necessities. Companies continue to invest, but with greater focus, more caution, and with long-term structural resilience in mind.”
Concerns over geopolitics and economic volatility
That said, concerns remain. Nearly half of European companies surveyed (47%) consider economic instability a barrier to growth. Furthermore, 44% see geopolitical tensions as a threat to their business activities — although this figure is slightly lower than the global average of 53%.
Cautious recovery in export expectations
One striking finding is the increasing optimism around exports. The share of companies anticipating export growth rose from 43% to 45%. Additionally, the number of companies planning to explore new international markets remains stable around 40%. Despite the uncertainties surrounding future trade policies, these figures reflect cautious optimism.
Digital transformation and talent development are key priorities
Digitalisation continues to top the strategic agenda. As many as 57% of European companies plan to increase their investments in information technology. Nearly half (47%) intend to step up efforts in training and skills development, and 45% plan to recruit new staff. However, the talent shortage is becoming more pressing: 48% of companies struggle to find qualified personnel.
R&D rebound and stronger focus on sustainability
After a decline earlier this year, the share of companies investing in research and development has climbed back to 51%. At the same time, the focus on sustainability is intensifying: 49% plan to allocate more resources to ESG initiatives. According to Van den Branden, there’s a shift in emphasis from compliance to strategic value.
“We see companies using their sustainability budgets more purposefully,” says Leslie Van den Branden. “It’s no longer just about compliance, but about tangible impact and long-term value creation.”
Cyberthreats gaining more weight
Finally, a worrying trend is emerging: 45% of companies expect to face digital incidents in the coming year — a rise of three percentage points compared to the previous quarter. Digital resilience is clearly becoming a more urgent priority.
