KPMG: Business leaders believe recession impact will be limited

The international audit and consulting company KPMG conducted interview about 1.3 thousand CEOs from 11 countries (Australia, Canada, China, France, Germany, India, Italy, Japan, Spain, Great Britain and the USA) and 11 key industries (asset management, auto industry, banking, consumer goods and retail trade, energy, infrastructure, insurance, medicine, manufacturing, high technology and telecommunications). During the survey, top managers were asked for their opinion on the immediate prospects for the global economy and the readiness of businesses to develop events in the context of the current geopolitical instability.

86% of respondents believe that a recession will come in the next 12 months, but the majority (58%) believe that it will be short and mild. 76% of respondents already have a plan of action during the expected recession. 73% believe that, despite the upcoming period of turbulence in the global economy, in the next six months it will show a high level of resilience to negative factors – in February, 13% fewer CEOs felt such confidence.

At the same time, many top managers (73%) believe that the recession will have a dampening effect on the economic recovery for about three years, and 75% are confident that the recession will complicate the post-pandemic economic recovery. At the same time, 71% of CEOs surveyed believe that a recession could reduce their companies’ revenue by no more than 10%.

Evgeniy Khvostik