As inflation rates continue to rise, FedEx CEO Raj Subramaniam is of the opinion that the world may be edging toward a global recession in 2023.
In fact, the World Bank said in a new study that central banks around the world have been raising interest rates this year with a degree of synchronicity not seen over the past five decades, a trend that is likely to continue.
Investors expect central banks to raise global monetary policy rates to almost four percent through 2023, an increase of more than two percentage points over their 2021 average.
However, Subramaniam’s comments followed the release of poor first-quarter financial data and the announcement of a number of drastic cost-cutting initiatives to assist the company weather the impending storm.
“I think so. But you know, these numbers, they don’t portend very well, “Subramaniam said in response to a question about whether the economy was “going into a worldwide recession.”
FedEx faced a decline in shipments around the globe “as macroeconomic trends significantly worsened later in the quarter,” the company said. It reported earnings of $3.44 a share, significantly below the analysts’ consensus of $5.14.