As the new year begins, CEOs and their teams are laser focused on challenges ahead and how to overcome them. The Conference Board© C-Suite Outlook 2022 reveals that among the top 10 factors keeping executives up at night that are outside of their control, six are directly related to the economy. COVID-19 disruptions have extended into a third year, substantiating the concentration of economic-related woes.
While there are regional differences in perceptions of top economic concerns, the broad themes are consistent, spanning from angst over higher inflation to labor shortages to recession to supply chain disruptions. Some perturbations, including severe global trade disruptions should fade with the pandemic, while others like changes in consumer behaviors may endure.
Surprisingly, higher borrowing costs fall near the bottom of the list of concerns for CEOs. As central banks have become more hawkish and interest rates rise across the world this year, CEOs are likely becoming more concerned about higher borrowing costs.
Still, executives are not without hope. Focusing on internal operations that are within the power of the firm to manage can help companies weather 2022’s economic challenges.