Economy may enter a worldwide recession, says FedEx CEO Raj Subramaniam

Raj Subramaniam, CEO, FedEx.

A recession is impending for the global economy, said CEO of FedEx Raj Subramaniam in an interview with CNBC on Thursday.

“I think so. But you know, these numbers, they don’t portend very well,” Subramaniam added in response to whether the economy is going into a worldwide recession.

The CEO's comment came after FedEx missed estimates on revenue and earnings in its first quarter. Shares of FedEx had fallen 15 percent in extended trading on Thursday. The company also withdrew its full-year guidance.

Subramaniam is of the view that weakening global shipment volumes drove FedEx’s disappointing results. He said the company had expected demand to increase after factories opened up post the COVID-induced shutdown in  China; however, demand fell.

“We’re seeing that volume decline in every segment around the world, and so you know, we’ve just started our second quarter,” he said. “The weekly numbers are not looking so good, so we just assume at this point that the economic conditions are not really good.”

“We are a reflection of everybody else’s business, especially the high-value economy in the world,” he explained.