Home Business Most CEOs expecting a mild and short recession: KPMG 2022 Outlook

Most CEOs expecting a mild and short recession: KPMG 2022 Outlook


2022 Outlook released on Tuesday shows that the global economic confidence over the next three years has rebounded 71 per cent from 60 per cent in early 2022. Majority of CEOs, however, believe that a is coming in the next 12 months and that it will make post-pandemic recovery harder.

While was listed as the top risk to growth in February 2022, the latest survey shows that CEOs feel emerging is the greatest threat to growth. Seventy-one per cent CEOs predicted it will impact company earnings by up to 10 per cent.

Talent is the top operation priority for CEOs. Over two-thirds of CEOs (71 per cent), agree the ability to retain talent with the pressures of are top of mind. Long-term impacts to organisations from the pandemic and geopolitical tensions are the other big challenges. T V Narendran, and Managing Director of Tata Steel said in the survey, “To me, geopolitical issues are the number one risk. I think we all need to build optimised and resilient supply chains.”

With a looming, there’s a significant short-term emphasis on hiring freezes and headcount reductions. In the long-term however, the survey said, 79 per cent CEOS expect their organisation’s headcount to increase over the next three years.

The survey of more than 1,300 CEOs at the world’s largest businesses including in India, found that despite economic concerns, f47 percent CEOs have a high appetite for mergers and acquisitions.


86% believe there will be a recession in the next 12 months

58% say any anticipated recession will be mild and short

Ideal working environment over next 3 years

65% in office

28% hybrid

7% fully remote

1% NA

Preparing for a recession – next 6 months

75% implemented or plan a hiring freeze

80% have considered or will consider downsizing their employee base

ESG* Expectations

69% see stakeholder demand for increased reporting and transparency on ESG issues

17% of CEOs indicate stakeholder skepticism around greenwashing is increasing

62% of CEOs say they will be looking to invest at least 6% of revenue towards sustainability

*Environmental, social, and corporate governance

Top 5 challenges in delivering ESG strategy over the next 3 years

17% Other pressing business/economic matters

16% Increased or frequently changing regulations

15% Lack of budget

14% The necessary to effectively measure and track initiatives

14% Identifying and measuring agreed metrics

Growth strategies for next 3 years

26% Strategic alliances with third parties

22% Organic growth

20% Managing geopolitical risks

11% M&A

11% Joint Ventures

9% Outsourcing

Risks to growth over the next 3 years

  1. Emerging/disruptive technology

  2. Operational issues

  3. Regulatory concerns

  4. Enviromental/Climate Change

  5. Reputational risk

Source link


Please enter your comment!
Please enter your name here