Nearly half of South Korean chief executive officers view a double-dip recession in the United States as the most worrisome risk facing the global economy in recent months, a poll showed Tuesday.
According to Samsung Economic Research Institute’s survey of 295 CEOs, 48 percent of the respondents said that their biggest global economic concern is the U.S. economy relapsing into a double-dip recession. The poll was conducted during the second week of September.
The South Korean economy relies heavily on exports to advanced countries, including the United States, Europe and China.
The spread of the fiscal crisis in Europe was the second-most feared risk for the CEOs, with 29 percent of those surveyed picking Europe’s debt concerns as the largest macroeconomic concern.
China’s monetary tightening was also feared by local business chiefs.
South Korean CEOs, however, were divided over the likelihood of the U.S. economy falling into another recession. Thirty-three percent of the respondents said there is a high possibility of a U.S. double-dip recession, while 32 percent said another recession in the world’s largest economy is unlikely.
Around half of South Korea’s business leaders saw little hope for improvement in the fiscal situation in Europe and 21 percent of them predicted some countries will abandon their eurozone memberships.
In response to the risks facing the global economy, 26 percent of the chief executives said that they will closely monitor foreign currency exchange rates and better manage inventory levels.
Others replied that they will try to develop new markets for exports and reinforce their presence in existing markets, according to the survey.
(Yonhap News)
