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CEOs around the world have one big worry for the year: the recession, a survey by nonprofit think tank The Conference Board has found.
That lines up with some comments from management on Friday’s fourth-quarter earnings calls. JPMorgan Chase (JPM) said its core case it is for a mild recession. Also, the World Bank cut its global growth forecast as inflation, higher interest rates and geopolitical events constrain economic activity.
The Conference Board survey, which polled ~700 CEOs and more than 450 C-suite executives, found that fears of an economic recession or downturn ranked as the top external concern for 2023.
Recession fears have intensified since last year’s survey, in which the recession was ranked the sixth largest external concern. Inflation and higher borrowing costs were among the top concerns of CEOs globally in 2023.
Most CEOs surveyed by the think tank expect little or no economic growth through most of 2023. 60% of US CEOs surveyed and 51% of global CEOs expect growth resume in your region at the end of 2023 or mid-2024.
Attracting and retaining talent topped the list of internal concerns for CEOs during the year amid labor shortages.
“While CEOs around the world seek to contain costs, employees can breathe a sigh of relief that few executives are resorting to layoffs,” said Dana Peterson, chief economist at The Conference Board. “Instead, they plan to mitigate risk by accelerating digital transformation, seeking new opportunities in higher-growth markets, and reviewing business models.”
Concerns about COVID-19 have receded into the background for most CEOs, except Asian CEOs. It remains the top external concern for Chinese CEOs for the second year in a row.
A JPMorgan Chase survey found that most leaders of small and midsize US companies expect a recession this year. But they are more optimistic about the prospects of their own companies than about the economy.
