More than half (57 per cent) of global pension plan sponsors are very concerned about the prospect of looming stagflation, according to a new survey by Ortec Finance Ltd.
Based on a series of interviews with Australian, British, Canadian, Danish, Dutch, Norwegian, Swedish and Swiss pension plan sponsors in June, the survey also found respondents were pessimistic about the prospects for the U.S. economy.
“Pension fund managers have real concerns about stagflation and looking at their predictions for when regions will enter a recession, these are not only justified but could become real very soon,” said Marnix Engels, managing director of pension strategy at Ortec, in a press release.
It also found 89 per cent of respondents expected the U.S. economy to enter a prolonged period of negative growth within the next year, with 34 per cent expecting a recession to begin within the next six months.
The global pension plan sponsors were slightly more confident about the position of European economies, though almost three-quarters expected the European Union and the U.K. to enter a recession within the next year. About two-thirds (64 per cent) of respondents expected the Chinese economy to enter a recession during the period.