Survey shows that economic recession is the top concern of CEOs around the world
Executives around the world have a great concern year – recession, a survey by the nonprofit consultancy The Conference Board shows.
That aligns with some of management’s comments during its fourth-quarter earnings calls on Friday. JPMorgan Chase (JPM) speak its central case is for a mild recession. In addition, the World Bank cut global growth forecast when inflation, higher interest rates, and geopolitical events constrain economic activity.
The Conference Board’s survey, which polled about 700 CEOs and more than 450 other C-suite executives, found recession or recession fears ranked as the top external worry for 2023. .
Fears of a recession grew from last year’s poll, in which a recession ranked as the sixth external concern. Inflation and higher borrowing costs are among the other top concerns for CEOs globally in 2023.
Most CEOs polled by the consultancy expect little or no economic growth through most of 2023. 60% of US CEOs surveyed and 51% of CEOs globally expect growth to continue. in their region by the end of 2023 or mid-2024.
Attracting and retaining talent tops CEO’s list of internal concerns this year amid labor shortages.
“While CEOs globally are looking to rein in costs, employees can breathe a sigh of relief as some executives are turning to layoffs,” said Dana Peterson, chief economist at The Conference Board. “. “Instead, they plan to mitigate risk by accelerating digital transformation, pursuing new opportunities in higher-growth markets, and revising business models.”
Concerns about COVID-19 have pushed most CEOs back, with the exception of Asian CEOs. It remains the top external concern of Chinese CEOs for the second year in a row.
A survey by JPMorgan Chase found that most US SME leaders expect a recession this year. But they are more optimistic about their company’s prospects than the economy.