Welcome to 2023! Heading towards a Recession?
Happy New Year my beautiful apes! Yes, we are in 2023 and cars still don’t fly, we can’t teleport and the metaverse is just a Second Life 2.0 type of thing… Disappointed? It can get worse!
Analysts say that this year many developed economies could fall into economic recession. Countries like the US, UK, Germany, Italy and a good chunk of EU countries could see their GDP fall for two consecutive quarters technically triggering an economic recession. The good news so far is that winter temperatures in Europe are abnormally high giving breathing space to countries that are highly dependent on gas for heating, electric production, and industrial uses. The bad news is that we still have a few months of winter ahead of us and things can still get very messy. We are not out of the woods yet!
On a different part of the world, China is facing the issues created by government’s “Zero COVID” policies as well as rejecting using western vaccines favouring locally developed ones. Now China is struggling to contain COVID contagion which is putting the Chinese health system under huge pressure. This can have global consequences in the trade markets if Chinese production of goods and transport of those goods are affected by lockdowns and closures as we saw in the last couple of years.
So, yes, apparently 2023 is going to be yet another challenging year. Hope you all stay safe and healthy!
This article is NOT financial advice, just a monkey typing stuff.
Pic Source: Freepik