Fears of an economic downturn are growing among CEOs, with some convinced the economy has already rolled over.
The majority of chief executive officers and other C-suite leaders across the globe believe their geographic region will enter a recession by the end of 2023, according to a survey from the Conference Board released Friday.
The business research firm found that 60% of CEOs expect the economy to contract in their primary region of operations by the end of 2023. Some 15% of CEOs say they believe their region has already entered recession.
This increasingly pessimistic sentiment among business leaders regarding the economic outlook comes as central banks around the world lay out aggressive plans to raise interest rates in a bid to quell multi-decade highs in inflation. In the U.S., the Federal Reserve on Wednesday raised interest rates by 0.75%, its largest increase since 1994.
The central bank’s larger-than-expected rate increase prompted a wave of downwardly revised forecasts on Wall Street. Economists at Bank of America Global Research slashed their U.S. growth forecast this week, and the firm now sees a 40% chance of recession next year.
Meanwhile, strategists at JPMorgan said the S&P 500’s decline implies an 85% chance of recession. Earlier this week, the S&P 500 entered a bear market.
Click here to read the full report from Alexandra Semenova at Yahoo Finance.