A quarter of asset management CEOs polled by PwC expect the global economy to shrink this year.

Out of 189 buy-side executives surveyed by the auditor, 25% said they don’t expect macro-economic conditions to turn positive over the next twelve months.

The negative sentiment is higher than the 16% reading last year and highlights a worsening global growth outlook across the financial sector.

Concerns over slowing growth, plunging oil prices and rock-bottom interest rates have already led to a sharp selloff in stocks this year.

Less than a third (30%) quizzed by PwC in the annual study expect the global economy to improve, down from 39% in 2015.

Despite the gloomy outlook, there is confidence when it comes to revenue growth for their own companies over the next 1-3 years.

Meanwhile over 160 CEOs (86%) say they will prioritise long-term over short-term profitability.

Aside from the global economy, over-regulation, geopolitical uncertainty, volatile exchange rates and interest rate rises were cited as the main threats to growth.

“Asset management is going through a time of fundamental change,” said Barry Benjamin, global asset and wealth management leader at PwC.

"This is a time of great opportunity for growth, yet asset managers need to become more innovative, leverage technology, manage a wider range of risks and use digital communication intelligently if they are to remain competitive.”