Financial Executives Say Recession Very Likely

Washington, DC, April 18, 2008—Financial executives believe that turmoil in credit and housing markets will be the most significant threat to economic growth this year.

The executives, members of the Financial Services Forum, say there is an 88 percent probability that the country will suffer a recession in the next 12 months.

The forum represents 20 of the largest financial companies in the country.

After credit market tumult and troubles in the housing market, the executives said the next biggest threats to the economy are the possibility the government will impose higher taxes or raise protectionist barriers to foreign competition.

"As the U.S. economy slows, trade and economic openness are more important than ever," said Rob Nichols, the president of the forum, a Washington trade group.

He said that U.S. exports accounted for 40 percent of economic growth last year.

The survey, conducted in early April, showed that the financial company executives were much more pessimistic than in their last survey, conducted in October.

The executives said the current credit turmoil still has a ways to go.