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Are We Facing A Global Recession In 2023? Here’s What You Need To Know

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The past two years has delivered hit after hit on the global economy, with fuel prices reaching sky-high levels, followed by price increases of essential commodities. While the start of 2022 looked promising as majority of businesses have reopened their doors, experts are predicting that a global recession is on the horizon. According to the Federal National Mortgage Association, a recession may likely start in the first part of 2023. Meanwhile, the International Monetary Fund is being slightly more optimistic, stating that while GDP growth continues to slow, the growth rate will improve by a scant 1% in the following year. 

These statements indicate that we may be facing slower economic growth and recovery in 2023. Moreover, while prices are expected to stabilize, the job market may offer less opportunities for those looking for a steady source of income. Nothing is set in stone, but with the shaky state of the economy, it’s crucial to make smart money moves and be extra careful with the financial decisions that you’ll make this year.

Think Twice Before Investing in Real Estate

Most people think that with the current high prices of homes, there’s a chance that there’ll be a housing market crash in the coming months, which would be the perfect time to buy a new house. According to a recent survey, 77% of potential homebuyers believe that the high prices are a “bubble” that’s waiting to burst and that there’s a bubble within their area. However, experts say that there isn’t any room for a bubble right now, simply because there aren’t enough homes for people who want one. There’s also the fact that builders and property developers are still trying to catch up with the demand for new homes, and fewer people are putting their houses up for sale. It is predicted that it will take at least two to three more years before there’s enough houses on the market, so it would be a good idea to wait until 2025 to purchase a new home.

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Wait A Little Before Buying a New Car

Meanwhile, those who are in the market for a new car may also have to wait for a little more as vehicle prices are at an all-time high. Scarcity is the main reason for the shocking price tags as production has slowed down due to the global microchip shortage, and experts claim that prices aren’t likely to drop until 2023. That being said, if your vehicle is still serviceable, it may be a good idea to wait until next year to upgrade your car. However, if your ride is on its last legs and needs to be replaced ASAP, look into vehicles buying programs online, such as Sam’s Club or Costco’s Auto Buying Program. With it, you’ll get better pricing without having to haggle at an auto dealership, and you’ll also be able to browse among new and used cars offered by reputable dealers.  

Consider Growing Your Own Food

On top of skyrocketing fuel costs, people all across the globe are also currently dealing with food shortages due to logistical constraints and the ongoing war between Ukraine and Russia. If current conditions persist, it is likely that we’ll continue to have food shortages down the line. Some people may try to hoard goods at this time in order to prepare for it, but hoarding can create artificial scarcity and result in national–and even global–shortages of essential items. Instead, people are advised to be mindful of their consumption habits, and also, consider growing their own food. Some of the best foods to grow in preparation for shortages are potatoes, garlic, cabbage, carrots, squash, and corn, as well as plants that can be used as medicine, such as lavender, oregano, chamomile, ginger, and aloe vera.

While there is a chance that these expert predictions may not come to pass, it’s better to be prepared just in case we have to face a recession. Practice good buying behavior, do your research before making major investments, grow your own food, and be mindful about your consumption habits to stay financially healthy in 2023 and beyond. 

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