Thursday, Dec 8, 2022
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Global CEOs prepare for a U-shaped recession, says survey

CEO recession
Around 3534 CEOs participated in the survey from 109 countries

According to a survey conducted by YPO-a business leadership network, most of the CEOs are preparing for a U-shaped recession due to the coronavirus pandemic, the media reported.

The survey saw participation from 3534 chief executive officers from around 109 countries.

Around 60 percent of the CEOs that participated in the survey, revealed that they are preparing for a U-shaped recovery – a long period between recession and an upturn, while around 22 percent of them predict a double-dip recession.

Around 40 percent of them also see the coronavirus pandemic as a threat to their business. 11 percent of them believe the worst-case scenario is possible, which is the closure of their business due to the pandemic.

Scott Mordell, YPO’s chief executive told the media, “Across the globe, the mindset of the business leader is clearly that the world has changed in a very short space of time. We are in unchartered waters, filled with an unprecedented number of pitfalls, that are challenging some businesses’ very existence.”

The coronavirus has brought the world to a state of lockdown and pushed the economy into recession. So far, around 180,000 people have lost their lives due to the Covid-19 virus.

Sectors such as aviation, logistics and tourism are the worst hit. The International Monetary Fund (IMF) recently announced the “Great Lockdown” recession will drag global GDP lower by 3 percent in 2020. The fund also sees GDP per capita shrinking across 170 nations due to the coronavirus pandemic.

The IMF believes the current recession could be worse than the 2008 financial crisis.

 

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