Business cycle CEOs around the world expect the recession to hit widely by next year, according to a poll

The greater part CEOs around the world expect an economic downturn by the end of next year, according to a poll by The Conference Board incubator.

The slowdown in economic growth is currently being fueled by, among other things, the war of aggression launched by Russia in Ukraine and rising energy prices.

More than 60 percent of executives who respond to the survey say they expect their companies’ core business areas to sink into recession within 12 to 18 months, according to AFP news agency. Recession refers to a situation in which GDP declines for two consecutive quarters.

Of the 750 CEOs, 15 percent said their operations were already in recession. Of the survey respondents, 450 work in Asia, Europe or North America.

Isot central banks, led by the United States, are working to curb inflation by raising interest rates, which has increased the likelihood of a slowdown in economic growth.

Of the United States the central bank decided on Wednesday to raise interest rate of 0.75 percentage points. The last time monetary policy was tightened was at the same time in 1994.

When monetary policy is tightened significantly, it will lead to a decline in business investment and a decline in household consumption over time.

In Finland the ministry released a forecast on friday, according to which Finland ‘s economic growth will slow down and the rise in prices will accelerate more than expected. According to the ministry, the risk of a recession in Finland and elsewhere in Europe will also increase as the war continues.

“Historically high energy prices, a recurrence of supply chain disruptions, growing geopolitical risks and shrinking consumer confidence are all putting pressure on global growth, ”said The Conference Board’s chief economist Dana Peterson To AFP.

In addition to these, the conditions for growth, according to Peterson, will be eliminated by China’s interest rate cuts and the cumulative spillover effects of the war in Europe.

The think tank expects the global economy to grow 2.9 percent this year and 2.3 percent next year. Uncertainty is involved in the assessment, suggesting that one extreme trend or a combination of several minor adverse events could reverse the direction of growth.