A majority (60%) of CIOs believe that a recession in 2025 is likely, or already underway, as companies respond to turbulent economics with reprioritisation of budgets and investments.

This is according to Boston Consulting Groups’ (BCG) latest CIO survey taken in April 2025 which reflects the growing turmoil brought on by US tariffs and the potential trade war.

As a result, CIOs have recalibrated their IT priorities, exhibiting caution as a rule when it comes to investment.

63% of CIOs ranked cost management as a top-three priority, just outperforming growth (58%) for the first time since 2023.

Still, a third (36%) of leaders ranked company growth as their number one priority, while 17% said the same for controlling costs and spending.

Prior to the tariff announcements, over three quarters of IT leaders surveyed by BCG planned on increasing their budgets – since then, this declined to just 56%.

BCG found that, while this sentiment is true across most sectors, industrial goods, retail, and travel and tourism are seeing the largest slowdown in IT budgets. Financial services, healthcare, and tech expect smaller declines in overall growth.

The report shows that leaders are moving quickly to reduce the impact of global economic uncertainty – nearly 60% said they had already began cost-cutting measures in late 2024, though half were also investing in AI and automation.

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Nearly half (44%) have stalled or paused a range of IT projects in response to uncertainty and shifting priorities, with about a third hoping to restart these projects within the next six months, with half not expecting to go ahead in the next year.

Even with these project delays, almost 60% plan to invest in AI and automation over the next year aiming to mitigate the impact of the tariffs.

CIOs are also rethinking long-term plans when it comes to trade disruptions, with four in ten expecting to reassess their contracts and global sourcing.

Overall in long-term views, 62% plan on introducing cost controls, while 58% are planning for AI and automation investment.