Posts

US likely to Avoid Recession Australia and Europe may not

avatar of @melbourneswest
25
@melbourneswest
·
·
0 views
·
2 min read

US likely to Avoid Recession Australia and Europe may not

Financial wows are hitting all markets and global reserve bank interest rate rises are now having their intended purpose of bringing down consumer spending to tackle inflation. However, the one thing we have been promised it that we wouldn't have a recession despite many people not believing the words of global reserve banks. It is now very much starting to look like we are heading right for a recession which will be the worst recession faced in 100 years if not longer.

It's a grim prediction for Australia with the industry calling on a recession to hit in 2023 with much of it being caused by a rise in unemployment figures.

Europe in Danger

Most of Europe in danger of recession brought on by the war between Ukraine and Russia that has seen energy costs skyrise along side interest rates that will bring the European economy into negative to low growth.

European governments are knuckling down on energy companies in order to attempt to provide some financial ease to their citizens by capping profits and increasing taxes. The move is to ensure Europe doesn't succumb to a longer than needed recessive period.

China to lead Asian recovery

Despite suffering heavy financial impacts over the years China is tipped to emerge strong with 5.7% growth leading Asia into a strong recovery. The nation had the longest and strictest COVID lockdowns which greatly impacted it's local economy. But after 3 years China is returning to the forefront and is expected to make the strongest recovery in the Asian region.

When can we see a return?

All industry leaders are expecting Interest rate rises to come to a stand still throughout 2023 and don't foresee any more large hikes and while 2023 is being marked the "Recession Year" there is no real talk on what 2024 will hold as the markets will be reliant on market confidence throughout 2023 and consumer spending.

Businesses that can make it through the next 12 months will likely see an increase in profits throughout 2024 but as we're entering a new chapter of financial markets one we haven't seen in 100+ years, it is just too soon to call.

Image sources provided supplemented by Canva Pro subscription. This is not financial advice and readers are advised to undertake their own research or seek professional financial services.

Posted Using LeoFinance Beta