Asia Pacific businesses worried about global recession, show JB Morgan survey

Asia Pacific businesses worried about global recession, show JB Morgan survey

As per a survey conducted by J.P. Morgan, Asia Pacific’s business decision-makers mention the influence of trade tariffs and view of global recession as biggest threats for their firms in the coming 6 to 12 months.

During a poll held at 2019, J.P. Morgan AP CFO (Asia Pacific CFO) & Treasurers Forum held in Shanghai, nearly 30% of the region’s group treasurers and CFO (Chief Financial Officers) from 130 international companies stated that a probable global recession stood as the biggest threat to their trades.

For nearly 27% of respondents the effect of international trade tariffs posed as a big concern, while a slump in emerging markets was disturbing nearly 24%, cyber threats have been revealed to be a worrying factor for 10% and Brexit and eurozone’s future was perturbing for nearly 9%.

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Oliver Brinkmann, Asia Pacific’s head of CB (Corporate Banking) at J.P. Morgan stated that the topnotch CFOs and global corporations’ treasurers are concerned greatly over the effect of the international macro environment’s headwinds.

Brinkmann wrote that that although the view of J.P. Morgan is not about a slump, it is expected that in the upcoming quarters it is expected that the growth will slow down, while 2019’s global growth forecast at 2.7% and falling to 2.5% in 2020.

According to the experts the possibility of a new recession to happen can be said to be uncomfortably high during the next 12-18 months regardless of actions taken by policymakers to attempt reversing the course. Recently the IMF (International Monetary Fund) did a downward revision to the outlook for its international growth for year 2019 and 2020 and conveyed that rise in chief Asian economies will slump more than what is expected.

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The global markets have been greatly agitated due to the current trade war between China and the US and have created a huge amount of uncertainty in some way because of international supply chains’ disruptions.

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