CEOs expect short-term recession

Ninety-eight percent of U.S.-based CEOs anticipate America will face a recession in 2023, according to The Wall Street Journal, citing data from the non-profit business research firm Conference Board. The pessimistic outlook may only be short-term as 22% predict GDP growth by mid-2023. Eighty-two percent anticipated recovery before mid-2024, the Conference Board reported Jan. 12. Chinese, Japanese and Latin American CEOs were more pessimistic. Nearly everybody but China believes there will be an economic downturn, Dana Peterson, Conference Board chief economist, told the WSJ. American CEOs say they plan to focus on innovation, digital transformation, high-growth markets and cost-cuttings. European and Japanese CEOs are more likely to focus on price adjusting. Chinese CEOs are more likely to search for new geographic markets. CEOs also indicated a willingness to commit to environmental, social and corporate governance (ESG) principles, with leaders rating customers/employees over business partners for prioritization, according to CB. Nearly 60% said they intend to go ahead with ESG investments even in the face of backlash. CEOs in the financial services sector are more likely to cut costs or layoffs. Goldman Sachs laid off 3,000 employees this week. Morgan Stanley laid off 1,600 in early December. (Daily Caller News Foundation 01/12/23) Just About Every CEO Is Predicting An Economic Downturn In 2023: POLL | The Daily Caller