In spite of a strong economy of the United States and the stock markets being robust, over half of the CEOs are expecting the global economic pace of growth to witness a major decline in this year.
As per the recent survey which was conducted by PwC, the CEOs have been increasingly growing pessimistic as 53% of them anticipate a major decline in the growth of the economy in the year 2020. The firm had released its annual survey during the ongoing World Economic Forum which is taking place in Davos. The firm had interviewed 1,600 CEOs in as many as 83 countries.
Only one year ago, in comparison, the CEOs had been expressing a high level of optimism with regard to the economy. At that time, 57% of the CEOs had made a response that the GDP growth is going to see an improvement and just 29% had expressed pessimism about the future of economic growth. In the year 2020 though, just 20% of the CEOs are making a projection about a rise in the rate of growth.
Contributing majorly to these issues and the ongoing cynicism is the uncertainty which has been lingering on with regard to a lot of issues and has come as the IMF slashed their own growth expectations. Besides, the uncertainty is still there over the trade relations between United States and China even thought there has been a signing of the phase one deal which has taken place.
The firm has further noted that the issues related to geopolitics and the lack of agreement with regard to the climate change has lead to the drop in the growth economically.