UK CFOs think there is a probability of 25% that the country's economy will fall into recession by the end of the year.
Almost three quarters (72%) believe that a slowdown in Europe is the biggest risk that could lead to recession, while 44% cite political risk and budget deficit as other factors. One third expressed concern about the impact of slowdown in China and other emerging economies.
“This appears to reflect the ongoing debate around a potential Brexit. Some of the leading concerns include political uncertainty, currency risk and slow-down in Europe, indicating that this issue is keeping CFOs awake at night,” said Philippe Dupuy, finance professor at Grenoble Ecole de Management, a partner of the survey.
“At the same time UK CFOs remain more optimistic about the prospect of the economy staying afloat than their counterparts across the globe – in particular half of Brazilian, South African and Greek CFOs believe their economies will enter or remain in recession by year-end.”
On a more positive note, the global survey, conducted by Duke University, Grenoble Ecole de Management, CFO Magazine and Tilburg University, revealed that the UK’s finance leaders have a better grasp on innovative technologies than their global competitors. For instance, more than half said they understand the new technologies of blockchain and smart contract, compared to 30% on average in Europe.