Major CEOs predict a recession amid steady inflation, stagnant global trade

Polls have pointed to inflation and the economy as top concerns for voters heading into midterms. Now, those concerns are being shared with major CEOs of U.S. companies. A survey showed the world’s richest are preparing for a recession. A survey of 400 CEOs shows a staggering 91% believe a recession is bound to happen within the next 12 months.

The survey also found that only 34% of these CEOs think the recession will be mild and short. As companies predict a recession, they are looking for ways to prepare and cut costs. The survey results noted that more than half of the CEOs are considering workforce reductions to deal with a recession.

As the U.S. grapples with recession predictions amid high interest rates and high energy costs, the global outlook is in a similar position. The U.S. has slowed down on global trade. Exports in goods and services fell 0.3%, the first decline since January, the Commerce Department said Tuesday. Imports were down 1.1%, continuing a downturn that started in June. With imports and exports down, a sharp slowdown in trade is projected for 2023. The World Trade Organization also lowered its forecast for global economic growth in 2023 to 2.3% from 3.3% and warned of an even sharper slowdown should central banks raise interest rates too sharply.

“The global economy faces a multipronged crisis,” Ngozi Okonjo-Iweala, secretary-general of the WTO, told the Wall Street Journal. “The picture for 2023 has darkened considerably.”