The world is facing a historically significant confluence of crises. The COVID-19 pandemic continues to impact businesses; the Russia/Ukraine conflict is creating supply chain challenges and driving an energy crisis in Europe; and surging inflation, combined with the threat of a long-term global recession, is threatening to significantly slow economic growth.

Demographics

To better understand how business leaders regard the impact of these factors on the global economy, GLG conducted a survey of 70 CFOs in the U.S., France, Germany, Italy, Spain, and the U.K. Respondents included companies with annual revenue of more than $11 million across a wide range of industries.

Impact of COVID-19

Most of the CFOs we surveyed (54%) said their company’s revenues decreased because of COVID-19. Of these, around one-third (32%) said revenues had already recovered. More than 4 in 10 did not expect to recover until 2023 or later, if at all. For those who saw a positive impact on revenue, this was largely short-lived, with 65% reporting their revenue had already returned to normal.

Russia/Ukraine

While GLG’s research showed that the majority of the CFOs we surveyed expect a “moderate” or “major” impact on the supply chain in their industry, they were split with regard to the energy crisis prompted by the Russia/Ukraine conflict.

Less than half (44%) of our respondents forecast that Europe will be forced to strike some kind of deal with Russia to regain Russian energy, while 54% feel that Europe will manage a transition to non-Russian energy.

Recession/Inflation

While only a few of the CFOs we surveyed felt we were already at the end of our current inflation surge, most recognized it was ongoing. However, our CFOs’ opinions differed by country regarding how the current inflationary period would play out. U.S. CFOs were the least optimistic, with nearly half (45%) reporting they believed the current era marked an end to low and stable inflation. Their European counterparts were more optimistic, with most indicating they believed this would be a temporary period before a return to normal.

Optimism aside, recession fears still loom large in our CFOs’ eyes. Most agreed that no matter how this inflationary period ends, a painful recession is likely in our future.

Conclusion

Not all is roses for the CFOs we surveyed, with most of them reporting that returning to the strengths of a pre-2020 economy is likely still some ways off. GLG’s full research report also includes insight into CFO perspectives on supply chain, working from home, and if our current economic situation is something short-lived or something that we will have to adapt to in order to prosper. The future is unwritten, but most of the CFOs we surveyed are preparing for tough times ahead.

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About GLG Network Surveys

GLG’s Network Surveys administer research on market-moving topics and trends, surveying relevant subject matter experts. Each survey focuses on a specific industry, and respondents have in-depth expertise about the latest developments in that industry. To ensure that the survey’s focus is relevant to the panellists, our Network Surveys team partners with a GLG expert with deep industry knowledge to write the questionnaire. GLG currently runs approximately 12 Network Surveys every month.

The standard deliverables for our Network Surveys include:

• 1 x individual responses (“raw data”) in Excel.
• 1 x PPT report with aggregated data.
• For selected topics: executive summary with key takeaways and conclusion.
• For selected topics: in-depth PowerPoint report of survey findings presented by the Network Member via webcast (optional).