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Recession in sight: how purposeful strategies will enable firms to weather the storm

August 2, 2022

The International Monetary Fund (IMF) said that the global economy is facing a pessimistic outlook in the coming years, with a greater possibility that Russia will cut off gas supplies to Europe altogether and with increased inflationary pressure, factors that could further slow growth this year (2022). In the latest report, the entity reduced its forecast for global economic growth in 2022 to 3.2%, almost half of last year’s 6.1% expansion.

Nevertheless, a group of top CEOs heard by Fortune magazine believe that companies that have built their balance sheets with consistency and with purposeful long-term strategies will weather the storm.

Fortune CEO Alan Murray shared some excerpts from his conversation with the executives:

“We’re focused on climate change and the role that our company can play in addressing the need to decarbonize our industry…and on how do we use that challenge to create innovation and opportunity for our business, for our employees, and for the customers that we serve.”

Jennifer Rumsey, incoming CEO (Aug. 1), Cummins Inc.

“You’ve seen hundreds of thousands of layoffs now from technology companies… We are accelerating our [digital transformation] in the face of potentially an economic pullback because talent is available.”

David McKay, CEO, RBC

“If a recession occurs, will we pull back? The answer’s no, we will not pull back. We have a very, very strong balance sheet and frankly we’re going to leverage that balance sheet to differentiate ourselves during a recession.”

Kevin Hourican, CEO, Sysco

“[What’s] driving us is a combination of all of the turbulence in the world, as well as the push for sustainability… And innovation is really what brings the two of them together and allows us to overcome them.”

Girish Saligram, CEO, Weatherford

“Since August of 2020, I’ve had my running shoes on, trying to catch up on capacity for our industry. So going into this downturn, we feel a little bit more confident. We have a strong balance sheet, we understand where this industry is going, and we want to be ready”.

Thomas Caulfield, CEO, GlobalFoundries

Source: Fortune | Valor Econômico