Recession Rises On List Of CEO Fears For 2020
For the second year in a row, CEOs consider a recession the top fear for the global economy in 2020, according to the Conference Board’s CEO Challenge survey.
The survey that polled 228 CEOs from around the world showed that 68 percent say the outcome of the U.S. presidential election in November is a major concern when planning for 2020, ahead of a Chinese trade resolution.
“Just two years ago, global recession was barely on the minds of CEOs in our survey. One real risk of this recession mindset is that it can become a self-fulfilling prophecy,” the survey’s authors said in a summary.
Uncertainty in Washington was making it difficult for businesses to plan ahead or forecast which, in turn, is forcing CEOs to continue to exercise caution in the deployment of cash.
Respondents from all major regions except for Japan and Latin America rated a potential recession as the top risk. Those in Japan and Latin America placed a recession as the second biggest risk that they are anticipating this year.
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Economists have been warning about a likely slowdown, particularly in the U.S. where fiscal stimulus from the 2017 tax bill is expected to wear off.
A survey of U.S. chief financial officers conducted by Duke University’s Fuqua School of Business and CFO magazine showed that optimism over the economy had hit a three-year low with the majority of CFOs expecting a recession before the 2020 U.S. presidential election.