According to a recent YPO COVID-19 global survey of 3,500 CEOs, 11% of global CEOs say their business is at risk of not surviving the coronavirus pandemic, while 51% of CEOs define the coronavirus as a “large or severe risk” to their business.
In Asia, 15% of North and Southeast Asian CEOs view the current economic climate as a “severe threat” to their business and are at risk of not surviving. While 51% of Asia’s CEOs expect a decline in revenues of 20% or more by March 2021, 54% expect to retain or increase their employee headcount by this time next year. Most of Asia’s CEOs believe they are still in the business continuity phase, rather than the business revival phase.
Globally, 64% of CEOs anticipate negative effects on revenue to continue at least one year from now. 43% expect revenue to be down by more than 20%, compared to 1 March 2020 levels. The hospitality/restaurant (82%), automotive (82%), and aerospace/aviation sectors (80%) have been hardest hit, and are most likely to report their business outlook as having “worsened significantly.”
As for economic recovery, 61% of CEOs anticipate a U-shaped curve (i.e. a sharp recession with a longer recovery), while 22% forecast a W-shaped curve (i.e. a double-dip recession and recovery). Only 12% of CEOs predict a V-shaped recovery (i.e. a quick recovery period).
This article was adapted with permission from the original article on ypo.org.