Standard Chartered CEO sees shallow and short recession by early 2023

Standard Chartered Chief Executive Bill Winters forecasts a "very modest and short" recession by early next year as central banks fight rising inflation caused by structural cost constraints such as wage increases.

Reuters

June 08, 2022 / 19:22 IST

Bill Winters, Group Chief Executive Officer of Standard Chartered Bank

Standard Chartered Chief Executive Bill Winters expects central banks' fight against surging inflation, driven by structural cost pressures such as wage growth, to result in a "relatively shallow and short" recession by early next year.

"I think central banks have to take this inflation problem head on," Winters told the Reuters Global Markets Forum (GMF) on Wednesday, adding that a strong financial system supported by underleveraged consumers and corporations will aid a faster recovery compared to the global financial crisis.

"We've had two real world stress tests in the last couple of years – the pandemic and a major European war," he said.

Standard Chartered continues to grow in China but at a slower pace, as COVID-19 lockdowns stifled its expansion, Winters said on the sidelines of Temasek's annual Ecosperity sustainability conference in Singapore.

Comparing Singapore's quick return to pre-pandemic norms, Winters said he expected the bank to return to "good solid growth in China and Hong Kong" once restrictions on travel and consumer activities were relaxed.

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