Short and Near Term Volatility
Forty percent of global CEOs think their organization will no longer be economically viable in ten years if they continues on the current course. That stark data point underscores the imperatives facing 4,410 CEOs from 105 countries and territories responding to PwC’s 26th Annual Global CEO Survey.
Oregon’s Labor Market and Tech Sector
High-technology is a pillar of Oregon’s economy. Overall it accounts for about 5% of statewide jobs, but due to its higher productivity and pay, the sector is 11% of overall wages paid and 11% of state GDP. Given the strong growth in recent years, the sector’s employment today is now at an all-time high, surpassing even the bubbliest of peaks of the dotcom era more than two decades ago.
Macroeconomic Headwinds
Consumer spending on physical goods remains robust in Q1 as service spending rapidly recovers. Forty-year inflation highs, supply chain issues, geopolitics, and a tight labor market contribute to downward pressure on spending. Additionally, Bloomberg Economics estimates that policymakers in the Group of Seven countries will shrink their balance sheets by about $410 billion during the remainder of 2022. It’s a stark turnaround from last year when they added $2.8 trillion — taking the total Quantitative Easing to more than $8 trillion since Covid-19 arrived.