The majority of Welsh businesses expect 2023 to be more successful than 2022, despite challenging economic forecasts, according to the latest data from Lloyds Bank.

Almost two thirds of businesses (64 per cent) said they are confident they would have greater success in the coming 12 months, compared to the past year.

More than quarter (28 per cent) were not confident about being more successful in 2023, and three per cent expected their business to perform at the same level in the next year.

The research was carried out between December 1 and December 14 as part of additional polling for the monthly Lloyds Bank Business Barometer.

Firms in Wales projected a more upbeat outlook for 2023, with 49 per cent expecting a higher turnover than in 2022. One in five businesses (20 per cent) expect turnover to increase by between five per cent and 19 per cent, and 10 per cent anticipate turnover to increase by more than 20 per cent.

When businesses were asked what they would do to fuel growth, 86 per cent said they were planning an investment drive.

Businesses reported that funding would be used to develop their company (51 per cent), improve sustainability (32 per cent), and invest in new technology (31 per cent).

Alongside investment, Welsh businesses plan on making several New Year’s resolutions.

These include keeping a closer eye on costs (49 per cent), followed by expanding in new markets (36 per cent). A quarter (25 per cent) said they are planning to retain existing staff, with 17 per cent set to invest in paying bonuses and short-term incentives. Nearly a third (30 per cent) are intending to target growth from their existing customer base.

Dave Atkinson, regional director for Wales at Lloyds Bank, said: “It’s pleasing to see so many Welsh businesses readying themselves for a strong year. Buoyed by a busy festive season, the country’s thriving hospitality and leisure sectors will be hoping to lay the foundations to keep momentum going as we enter 2023.

“While firms will rightly be mindful of costs and carefully considering where their business will benefit most from investment, it’s encouraging that they are focusing on both existing customers and new markets as routes for growth. Having financial flexibility will be key for businesses as they expand their offering, and we will be here to help them maintain the cashflow they need to unlock new opportunities.”