Recession 2023.

The financial world appears to have been nuked; the previous few months have seen some of the worst losses in history, debt is at record highs, firms can't afford rent, and bankruptcy is on the increase. Many economists have ceased predicting a recession instead, the phrase is already having an impact. Jeff Bezos is warning Americans to prepare for the worst, but the narrative isn't the same in politics, with some world leaders acting as if everything is OK. Which may jeopardies their citizens financial security. You've probably heard that a lot lately about recession 2023, but in order to grasp how terrible things may get in the future, we need to look at the data and see what they say. We are now in a recession, or one is on the way, and how severe will it be? Let's have a look at the stats. Almost the last year, over 46 trillion dollars have been lost in the global stock and bond markets. This is a large quantity, especially when compared to the overall losses from 2007 to 2008.

The TED spread (in red), an indicator of perceived risk in the general economy, increased significantly during the financial crisis, reflecting an increase in perceived credit risk. The TED spread spiked up in July 2007, remained volatile for a year, then spiked even higher in September 2008, reaching a record 4.65% on October 10, 2008.

During the GFC, approximately 2 trillion dollars were lost over a similar one-year period, implying that 'what's happening now is approximately 20 times worse than before.' Even after adjusting for inflation, Americans are currently in a record amount of debt, with the gross national debt recently crossing 31 trillion dollars for the first time and credit card rates at record highs. Fewer people are able to repay their debts, therefore delinquency and personal bankruptcy are already on the rise.

When it comes to debt, perhaps the most concerning number is that of mortgages. 'Wells Fargo' recently stated that new mortgages are down 90 percent in total, indicating. The cost of owning a home has grown prohibitive for the majority of people, and mortgage defaults are increasing over the world, as evidenced in Australia, the United Kingdom, Iceland, and the United States. And everything in between is economic turmoil.

Wall Fargo Layoff Recession 2023.

People are heavily spending their savings as a result of this, since the personal savings rate in the US just fell to 3.1 percent, which is the second-lowest level in recorded history. Over a third of small to medium sized firms in the US are unable to pay their rent, with 37 % of them going into arrears in October as the economic crisis spreads into the corporate sphere. Nearly half of all food service firms in Canada, were unable to pay their rent in the previous month. The restaurant industry is the one that is suffering the most. The present economic crisis affects large corporations as well as small firms.

Personal Saving Rate.

Amazon just made history by being the first firm to ever experience a "trillion dollar" value loss, which might result in the corporation laying off up to 10,000 workers. Zuckerberg has also lost about $100 billion of his own money this week alone, Meta has already laid off 13,000 employees, or about 13% of its workforce, about the same percentage of Stripes employees have already left, and Twitter's new owner Elon Musk has just fired 50% of its staff, warning that the company may go out of business if it doesn't receive more funding. Clearly, this is distressing for both individuals and businesses. And it seems giant Tech firms are preparing for Recession  2023.

Tech Layoffs in 2022 so far, percentage of total workforce.

However, some politicians are attempting to convince you not to worry too much. Many politicians are acting as though the economy is doing okay rather than preparing their citizens for a severe recession. This is probably done so, that they won't be held responsible for it. Most eminent economists agreed that we are either in a recession or extremely close to one. Despite how awful things are today, the IMF has issued a warning that things will only become worse as we approach 2023.

Jeff Bezos thinks it's time to batten down the hatches, despite the fact that his company depends on customers buying as much as they can. He is telling people to put off bigger purchases, though. In order for them to be able to save money in case an approaching recession forces them to do so. On Jeff Bezos' assertion, most CEOs appear to concur. NPR said that it was difficult to identify even one person who is welcoming a recession. In essence, everyone believes that things will worsen, with the exception of those in politics.

Only a week ago US President Joe Biden stated that the US is not in a recession at the moment. Despite the fact that a recession is typically defined as two consecutive quarters of no economic growth, which the United States has recently experienced. Other foreign leaders appear to be missing the indications. The UK's new Prime Minister, Rishi Sunak, has stated that the UK economy is solid, despite the fact that it nearly collapsed just a few weeks ago, with British markets losing over half a trillion dollars. The issue in politics is that instead of just informing the public about the facts. So that folks can be prepared. They all say they are well-prepared for scenarios like this.

UK GDP Q3 2022.

Here's the crucial question,  How bad may things truly go if we are in a recession and things are just going to get worse in 2023? Nobody is able to forecast whether a recession will continue or worsen. However, if the global economy keeps contracting or stagnating, we may anticipate some repercussions. First, employment cuts will continue, and those who add the least value to a firm will often be let go first. With less money floating around in the economy, consumer spending will decline, resulting in businesses having less income. Overall, this will lead to lower overall manufacturing and a shrinking of a nation's GDP. However, technically speaking, this is not all bad news as interest rates rise and inflation declines. The cost of products and services will often go down, so some of the price increases we've witnessed over the past two years will probably ultimately level off.

How to prepare for Recession 2023.

Ayhan Kose, vice president of the World Bank, stated that recent tightening of monetary and fiscal policy will contribute in reducing inflation; nevertheless, the extremely synchronised nature of the actions might intensify the situation and intensify the downturn in global economy. According to the report, by expressing their policy decisions clearly, central banks can fight inflation without causing a global recession, and governments should implement reliable medium-term fiscal plans and keep providing targeted aid to disadvantaged people.

Growth rate forecasts 2023.

Sanjoo Thapa