47% of Global CEOs Say a Recession More Severe Than the Financial Crisis Is Coming

Global CEOs 98% Expect Global Recession
58% of Domestic CEOs Also Concerned About Severe Domestic Recession

[Asia Economy Reporter Lee Seon-ae] The majority of CEOs worldwide are concerned that a global economic recession will occur due to uncertainties such as geopolitical tensions, supply chain restructuring, and COVID-19.

On the 26th, EY Hanyoung, a global accounting and consulting firm, through its strategy consulting specialized organization EY-Parthenon, announced the results of the 'January 2023 EY CEO Outlook Pulse' survey. The survey reflects the views of 1,200 CEOs from 16 countries worldwide, including Korea, on economic outlooks, opportunities, and challenges.

98% of CEOs who participated in the survey predicted that the global economy will enter a recession this year. While most respondents anticipated a recession, 50% expected it to be severe, whereas 48% forecasted a mild recession, indicating differing perspectives on the severity and duration of the upcoming downturn.

Among respondents, excluding those who answered that they expect a mild and short recession or do not anticipate a recession, 55% (47% of the total) expressed concerns that the global recession would be more severe than the 2007-2008 global financial crisis.

All domestic CEOs who responded anticipated a global recession. Among them, 72% believed the global recession would be severe, and 58% responded regarding the domestic economy, indicating that they expect the global economy to face more difficulties than the domestic economy.

Additionally, 32% of global CEOs identified "uncertain monetary policy direction and rising capital costs" as the greatest risk to growth. COVID-19 related issues were also cited by 32%, but concerns have decreased compared to the previous survey result of 43%. Domestic respondents ranked the greatest risks as COVID-19 related issues (38%), regionalization and fragmentation of the global economy (34%), and intensified regulations within specific markets (34%).

Choi Jae-won, Head of EY-Parthenon at EY Hanyoung, emphasized, "As a recession is expected due to the combined effects of high interest rates, inflation, and geopolitical crises, securing financial soundness is currently the top priority for companies," adding, "Companies should maintain various growth drivers that have been pursued since before COVID-19 to be prepared to seize opportunities when market order is disrupted."