According to a survey of chief financial officers that was
recently released, the longest economic expansion in the history of the U.S.
could soon come to an end. The financial chiefs identified growing economic
uncertainty and trade wars as their major fears, which could eventually halt
the record streak of U.S. GDP growth that is only a month shy of its 10th year.
About 48% of the chief financial officers predicted that the
economy could go into recession by mid-2020. This is according to the quarterly
survey conducted by the Duke University/CFO Global Business Outlook. Over 69%
of the surveyed financial experts also predicted an economic downturn by the
end of next year.
“It looks likely that an economic recession is on the
horizon for 2020,” says John Graham, a finance professor at Duke University in
a video comment.
The recent prediction is the third consecutive prediction
from chief financial officers, which also matches other reports of a weakening
U.S. economy. According to financial analysts from Morgan Stanley, a recession
is possible in just nine months.
In what looks like a response to the predictions, the
Federal Reserve has said that it is open to cutting interest rates, a move it
typically does to stimulate the economy during a slowdown. This is coming after
President Donald Trump called off his threatened tariffs on Mexico. The Fed had
raised its benchmark rate four times last year.
The fear of an economic slowdown is global with a survey
more than 500 CFOs across the globe revealing that CFOs in other parts of the
world were more likely than those in the U.S. to predict a downturn in their
countries within a year.
A whopping 85% of African CFOs believe that their countries
will be in recession before the end of 2020. Sixty-three percent of the
counterparts in Europe, 57% of Asian CFOs and 52% of Latin American CFOs also
had the same belief.
“For the first time in a decade,” Graham said, “no region of
the world appears to be on solid enough economic footing to be the engine that
pulls the global economy upward.”
More economic news and other related information as well as
the services offered by Pacific Capital Advisors can be found on their website.
Contact Information
Pacific Capital Advisors
680 6th Avenue, New York City
New York
10019
United States
Phone: +1 (914) 867-3862
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