As the world continues to grapple with the fallout of the coronavirus pandemic, another looming economic threat is starting to come into focus. According to the World Bank, the global economy is set to enter a recession in 2023, as a result of sluggish growth in the United States, Europe, and China – the world’s largest economies. If the report turns out to be true, this will be the biggest recession behind only 2008 and the issues faced by various economies during the pandemic. This news has been met with a mix of anxiety and fear, and many fear that the world is not yet ready for another recession. However, it doesn’t have to be all bad news. While it is devastating to have to face an economic recession, it is possible to weather the storm by some degree by making the necessary preparations.
The key to surviving a recession is to start planning now before the recession starts. Pre-emptive measures can include budgeting, diversifying investments, and boosting financial literacy. These measures can help to build economic resilience, and give individuals and businesses the best possible chance at surviving. Governments also have a role to play in preparing for a recession. One way to mitigate the effects of a recession is to increase spending on public goods and services to support vulnerable groups and stimulate the economy. Ultimately, it is clear that the world is not yet ready for another recession. But with the right measures in place, the impact of the next recession can be lessened, and the global economy can recover faster.
