Enterprise leaders say looming recession can be brief and sharp: KPMG

In Singapore, practically 90% of Singapore CEOs have both initiated or are planning a hiring freeze over the subsequent six months, in line with KPMG.

Roslan Rahman | AFP | Getty Photos

World CEOs are anticipating a recession within the subsequent 12 monthsin line with a brand new survey by skilled companies agency KPMG, which mentioned greater than half of enterprise leaders surveyed count on the downturn to be “delicate and brief.”

A majority of the 1,300 chief executives surveyed by KPMG between July and August, nevertheless, warned that elevated disruptions – resembling a recession – might stop their companies from bouncing again from the pandemic.

That mentioned, CEOs had been extra optimistic in comparison with the beginning of the yr and mentioned there could be development prospects over the subsequent three years.

“CEOs all over the world are exhibiting elevated confidence, braveness and tenacity in overcoming near-term financial impacts on their companies, as evidenced by their rising confidence within the international economic system and their optimism a couple of three-year horizon,” mentioned KPMG Singapore Managing Associate Ong Pang Thyé.

“We’re additionally seeing loads of positioning for long-term development, resembling in Singapore the place round 80% of CEOs indicated that their company goal could have the largest impression on constructing buyer relationships over the subsequent three years.”


Globally, CEOs are additionally wanting favorably on mergers, acquisitions and innovation, however many fear that dealmakers are “taking a a lot sharper pencil to the numbers and specializing in creating worth for unlock and monitor the worth of transactions,” in line with the KPMG report.

World wide, along with recessions and the financial impression of rising rates of interest, CEOs are additionally frightened about pandemic fatigue, KPMG mentioned.

Along with instant challenges resembling a recession, enterprise leaders say they continue to be underneath strain to satisfy their broader social duties within the face of public scrutiny of their company goal and their environmental, social and governance (ESG).

Views of enterprise leaders in Asia

In Asia-Pacific, fewer CEOs count on a recession. Of these surveyed, 63% noticed a recession taking place within the subsequent yr, in comparison with 86% globally.

However they’re additionally much less optimistic about development over the subsequent three years in comparison with their international friends.

Globally and in Asia-Pacific, roughly 20% report is not going to improve hiring over the subsequent three years and can retain their workforce or scale back it additional.

UN predicts global GDP growth of 2.2% for 2023, plunging global economy into recession