Just a few weeks ago, US officials denied even the slightest possibility of a recession in the upcoming year. However, they have changed their view. US Treasury Secretary Janet Yellen has admitted that the national economy may slip into a recession in 2023.
In a recent interview with the CBS channel, Janet Yellen said that in 2023, the US economy might see a recession. Although the US Treasury Secretary said there was a risk of recession, she is sure that the approaching recession is not necessary for lower inflation. “There was a surge in hiring, put people back to work,” Janet Yellen said. “To bring down inflation and because almost everybody who wants a job has a job, growth has to slow,” she added. Janet Yellen also stressed that “there are always risks of a recession” and “the economy remains prone to shocks”. However, she also supposes that the national economy is quite stable and has a strong banking system and business sector. In other words, the US has a good chance of coming across an economic slump and avoiding a recession.
Unlike the US economy, the global one cannot boast of stable economic indicators. Research conducted by the Institute of International Finance unveiled that in 2023, the global economy will grow by 1.2%. This performance could be compared with the figures recorded during the crisis of 2008-2009. According to the main scenario, the conflict in Ukraine will last until 2024. In this light, the global economy may tumble to the levels of the previous financial crisis.
