Most Top Managers of Companies Across the World Expect a Recession in the Next 1-1.5 Years
The survey shows a sharp deterioration in sentiment among CEOs around the world. At the end of 2021, only 22% of respondents noted recession risks, and 39% stated the same at the end of 2020.
As part of the study, the Conference Board interviewed 750 directors of companies from different countries. The survey was conducted in May, that is, before the recent increase in the Fed's rate by 75 basis points at once.
Among the most negative factors, top managers named the consequences of Russia's military special operation in Ukraine, problems in supply chains and the situation with coronavirus in China, as well as rising of interest rates. In addition, the directors are concerned about rising energy prices, causing an increase in the cost of transport services.
Some companies have announced a suspension of hiring of new employees or even layoffs because of recession fears.