As the global economy enters 2025, concerns about a potential recession continue to loom large for CEOs worldwide. A recent survey conducted by The Conference Board found that 46% of 508 CEOs view recession as their top economic concern, with U.S. CEOs slightly less worried at 40% [19e1903d]. In contrast, Asian CEOs express the highest levels of concern, largely due to the slowing economy in China, which has significant implications for global trade and investment.
In addition to recession fears, CEOs are grappling with multiple challenges. A notable 25% of respondents cited higher labor costs, inflation, and labor shortages as significant issues impacting their businesses [19e1903d]. Furthermore, geopolitical tensions, particularly between the U.S., China, and the EU, are causing anxiety, with 41% of CEOs expressing concern over these dynamics. Political instability on a global scale is also a pressing worry for 39% of those surveyed, while 44.5% rank intensified global trade wars among their top concerns.
The issue of national debt has emerged as a key geopolitical risk, identified by 51% of U.S. CEOs [19e1903d]. In response to these uncertainties, a significant majority—78%—plan to alter their supply chains over the next three to five years, with 92% of Asian CEOs indicating similar intentions. The adoption of digital technology and artificial intelligence (AI) for supply chain improvements is on the rise, with 34% of CEOs planning to implement such advancements [19e1903d]. Interestingly, only 5% of CEOs overall plan to exit China, suggesting a cautious approach to navigating the complexities of the Chinese market.
Sustainability remains a critical focus, with 39% of CEOs identifying it as the top issue in environmental, social, and governance (ESG) considerations [19e1903d]. The survey, conducted from November 7 to 29, 2024, underscores the multifaceted challenges facing global leaders as they strategize for an uncertain economic future while balancing the demands of sustainability and technological advancement.