6 out of 10 Global CEOs Expect Economic Recession by Next Year

Survey Results from US Nonprofit Economic Research Institute 'Conference Board'
Possibility That Business Leaders' Concerns About Economic Recession Have Currently Increased

Citizens shopping at a large supermarket in Seoul. Photo by Hyunmin Kim kimhyun81@

[Asia Economy Kim Nayeon, Intern Reporter] The majority of global company chief executive officers (CEOs) forecast a recession this year and extending through the end of next year.

According to the US nonprofit economic research organization 'The Conference Board' on the 17th (local time), a survey conducted from the 10th to the 24th of last month targeting 750 senior executives including CEOs and chief financial officers (CFOs) of major companies worldwide revealed that over 60% expect a recession to occur in the region where their company's main business is located before the end of next year.

Fifteen percent of respondents stated that they believe a recession has already begun. The proportion who answered that a recession would occur by the end of this year surged to 58.3%, and when extending the timeframe to next year, 76.1% anticipated a recession.

The Wall Street Journal (WSJ) pointed out that the percentage of CEOs expecting recession risks was only 22% in the same survey conducted by the organization at the end of last year, but it has nearly tripled in just half a year.

Regarding this, The Conference Board analyzed that historically high energy prices, worsening supply chain disruptions, escalating geopolitical risks due to the Russia-Ukraine war, weakening consumer sentiment, and China's COVID-19 lockdowns are exerting downward pressure on global growth.

In particular, concerns are growing that the high-intensity monetary tightening policies of major central banks, such as the US Federal Reserve (Fed), which implemented a 'Giant Step' (0.75 percentage point interest rate hike) to curb inflation, could trigger a recession.

This survey was conducted before the Fed's decision on the 15th to raise interest rates by 0.75 percentage points, suggesting that current business leaders' concerns about a recession may have increased further.

Ilham Kadri, CEO of Brussels-based chemical company Solvay, told the WSJ, "We need to prepare for tougher times," expressing concerns that soaring inflation could weaken demand for their products.