European Business Leaders Say "Economic Recovery from COVID-19 Shock May Take Up to 3 Years"

[Asia Economy Reporter Naju-seok] An analysis has emerged suggesting that it may take three years for the economic shock caused by the novel coronavirus infection (COVID-19) to recover.

On the 18th (local time), the U.S. think tank Conference Board conducted a survey targeting executives belonging to the European large business organization ERT (European Round Table for Industry), and the results indicated that it would be difficult to overcome the shock of COVID-19 in the short term.

53% of European executives expected the global economy to take about 1 to 2 years to recover. Meanwhile, 39% of respondents anticipated it would take about 2 to 3 years. The Wall Street Journal (WSJ) reported that the Conference Board had previously conducted a similar survey targeting U.S. executives, which yielded almost identical results.

Both U.S. and European executives forecasted the economic confidence index perceived by managers (0?100) to be 34. The confidence index for the next six months was also limited to around 48 to 50.

The Conference Board stated, "Almost all executives gave a negative evaluation of the current business environment." The survey targeting European executives was conducted in mid-April, while the survey for U.S. executives took place from late March to early April.

European executives responded that they would reduce costs by postponing planned investments, cutting down on business trips, and halting new hires. About one-third of all respondents also said they were considering temporarily closing factories or distribution centers.

This content was produced with the assistance of AI translation services.