According to the KPMG 2022 India CEO Outlook, around 66% of CEOs in India and 86% of CEOs globally anticipate a recession in the next 12 months, ET reported.
The KPMG 2022 CEO Outlook surveyed CEOs globally as well as in India on their three-year outlook on the business and economic landscapes. The confidence of CEOs in India and the global economy has increased to 57% in August from 52% in February 2022, despite geopolitical and economic challenges, the report shows.
Overall, 82% of CEOs in India are confident in the resilience of the global economy in the short term, while the long-term growth outlook is yet to bounce back. Even though CEOs in India see a decline in growth prospects when it comes to their companies and country, they seem resilient enough to bounce back in the short term, the survey finds.
According to Indian CEOs, the COVID-19 pandemic, rising interest rates, inflation, and an anticipated recession and reputational risk are among the most pressing concerns.
Geopolitical uncertainties will continue to impact strategies and supply chains over the next three years, CEOs in India indicate. As many as 75% of CEOs in India compared to 81% of CEOs globally have adjusted or plan to adjust their risk management procedures considering geopolitical risk, and 21% of CEOs in India compared to 20% of CEOs globally will be increasing measures to adapt to geopolitical issues to achieve their growth objectives, the survey shows.
Meanwhile, in the last week, the IMF predicted global growth will slow to 2.7% next year and anticipates that 2023 will feel like a recession for millions around the world.
More than a third of the global economy will see two consecutive quarters of negative growth, while the three largest economies — the United States, the European Union, and China — will continue to slow, the report said.
On the other hand, the world bank said that the interest rate hikes around the world would trigger a global recession in 2023.
Raising rates makes borrowing more expensive to try to bring down the pace of price rises. But it also makes loans more costly, which can slow economic growth, the world bank said.
On October 6, the World Trade Organization reduced its global trade forecast to 1% in 2023 from 3.4% previously, citing rising commodity prices and interest rates, according to media reports.
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