Global CEOs anticipate the upcoming recession to be 'short and sharp,' vote offers

October 6, 2022: -Global CEOs anticipate a recession in the next 12 months, according to a new survey by professional services company KPMG, which said more than half of the business leaders anticipated the slowdown to be “mild and short.”

Between July and August, all the 1,300 chief executives polled by KPMG warned that increased disruptions, such as a recession, could make it difficult for their businesses to rebound from the pandemic.

The CEOs expressed more optimism than at the start of the year and said there would be growth prospects in the next three years.

“CEOs all over the world are displaying greater confidence, grit, and tenacity in riding out the short-term economic impacts to their businesses as seen in their increasing confidence in the global economy and their optimism over a three-year horizon,” said KPMG Singapore managing partner Ong Pang Thye.

“We see many positioning for long-term growth, such as in Singapore where about 80% of CEOs have indicated that their corporate purpose will have the biggest impact in building customer relationships over the next three years.”

Globally, CEOs are also viewing mergers, acquisitions, and innovation favorably. Still, many are concerned that dealmakers are “taking a much sharper pencil to the numbers and focus on value creation to unlock and track the deal value,” the KPMG report said.

Across the globe, aside from recessions and the economic impact of rising interest rates, CEOs are also worried about pandemic fatigue, KPMG said.

On top of immediate challenges such as a recession, business leaders say they remain under pressure to meet their broader social responsibilities in the face of public scrutiny on their corporate purpose and environmental, social, and governance (ESG) accountabilities.