Polls have pointed to inflation and the economy as top concerns for voters heading into midterms. Now, those concerns are being shared with major CEOs of U.S. companies. A survey showed the world’s richest are preparing for a recession. A survey of 400 CEOs shows a staggering 91% believe a recession is bound to happen within the next 12 months.
The survey also found that only 34% of these CEOs think the recession will be mild and short. As companies predict a recession, they are looking for ways to prepare and cut costs. The survey results noted that more than half of the CEOs are considering workforce reductions to deal with a recession.
As the U.S. grapples with recession predictions amid high interest rates and high energy costs, the global outlook is in a similar position. The U.S. has slowed down on global trade. Exports in goods and services fell 0.3%, the first decline since January, the Commerce Department said Tuesday. Imports were down 1.1%, continuing a downturn that started in June. With imports and exports down, a sharp slowdown in trade is projected for 2023. The World Trade Organization also lowered its forecast for global economic growth in 2023 to 2.3% from 3.3% and warned of an even sharper slowdown should central banks raise interest rates too sharply.
“The global economy faces a multipronged crisis,” Ngozi Okonjo-Iweala, secretary-general of the WTO, told the Wall Street Journal. “The picture for 2023 has darkened considerably.”
