97 Percent Of CFOs Surveyed Believe Economic Slowdown Or Recession Coming Before 2021
Nearly all CFOs who responded to a survey expect a recession to occur in 2020, according to one of the world’s longest-running and most comprehensive research reports on senior finance executives conducted by financial firm Deloitte.
This does not match the latest forecast by the U.S. Federal Reserve that expects the economy to experience a 2 percent growth in 2020 and a 1.9 percent growth in 2021.
In 2019, 88 percent of the CFOs polled expected a downturn in the first quarter of 2020 but this has risen to 97 percent this year.
CFOs are growing increasingly worried about the upcoming elections. About two-thirds of the financial executives in the survey suggest that the U.S. presidential election results will affect the U.S. economy beyond 2020.
According to the survey, domestic hiring growth dropped to its second-lowest level in around 6 years and earnings growth is at its second-lowest in the survey’s history.
Sandy Cockrell, Delloite’s global CFO program leader told Newsweek that there was no optimism in those numbers.
Nearly half of the CFOs noted that hiring and retaining qualified employees were the most pressing concerns.
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Some analysts believe that if current trends hold there will be enough economic heft to help Trump over the finish line in November.
The U.S. continues to lead the world in terms of optimism about the general business environment despite the pending recession.