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Recession Is Coming

    Recession

    Recession

    The 5 Most Likely Causes of a 2022-Style Recession and What to Expect

    Recession Is Coming

     

    The five most likely causes of the next recession are:

    A downturn in the housing sector

    There are many factors that have caused the housing market to experience a downturn. One of the main factors is the increase in mortgage rates.

    Increased mortgage rates have made monthly payments higher and this has led to fewer people being able to afford homes.

    Other factors include tight credit standards and millennials waiting longer to buy homes.

    A downturn in the financial sector

    The financial sector has been on a downward slope for some time.

    Recently, there has been a major downturn in the sector and that is bad news not only for those who work in the financial industry but also for the people who rely on it.

    A slowdown in international trade

    International trade is slowing due to a variety of factors including the global economic slowdown, stricter export controls, and rising tariffs.

    With this in mind, many experts predict that international trade will decrease by as much as 8% over the next year.

    increase in inflation

    A slowdown in global economic growth

    The global economy is slowing down. Fears of trade wars, Brexit, and a recession in Europe are slowing the world’s economic growth.

    An increase in inflation

    Inflation is defined as a general rise in prices and fall in the purchasing power of money. It means that your dollar will not go as far tomorrow as it did today.

    Inflation is a common economic problem, but the severity of it varies from country to country.

    In some countries, inflation can be so high that it makes people unable to afford basic necessities like food.

    And other countries have such low inflation rates that it may not even be an issue at all.

    What is a recession?

    A recession is a period of time in which a country’s economy experiences a decline in total output. This can be caused by an increase in unemployment, a reduction in the rate of growth, or both.

    A recession is usually accompanied by lower levels of employment and income, along with higher levels of poverty. The term “recession” was first used during the 1930s to refer to the Great Depression.

    What is a recession

    An Unprecedented Chinese Slowdown

    The Chinese economy is slowing down at a time when the trade wars between the US and China are intensifying.

    The Chinese economy has been slowing down since 2016 and it’s not just because of the US-China trade war.

    The slowdown in economic growth can be attributed to various factors such as a decrease in industrial production, a decrease in private investment, and an increase in debt.

    The trade war between the US and China has intensified since March 2018 with both countries imposing tariffs on each other’s imports.

    This is causing uncertainty among investors which is affecting China’s economic growth negatively.

    Consumer Borrowing Slowing Down

    The economy is slowing down and so are the consumers. Consumer borrowing has slowed down as well.

    The consumer confidence index is a measurement of how confident consumers are in their financial situation and the overall economy.

    It is a gauge of how much they are willing to spend on goods and services. The consumer spending data shows that in the last few months, there has been a slow down in consumption.

    make money

    Higher Interest Rates Will Speed up the Process

    Higher interest rates on loans will speed up the process.

    The higher interest rates on loans will make it more difficult for people to get a loan, which in turn will decrease the amount of money that is available in the economy.

    This will cause businesses to have less cash and make it more difficult for them to grow their business.

    The higher interest rates will also make it more expensive for people to buy homes, cars, and other consumer goods.

    As a result, the prices of these items will increase because there are fewer buyers and sellers.

    This situation is not sustainable because eventually, people’s wages won’t be able to keep up with the cost of living that has been inflated by higher interest rates.

    When this happens, people are going to have a hard time paying their bills and making ends meet.

     

    Recession Is Coming

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