Is the US economy headed for recession? Hereâ€™s how to stay in the know

2023 has been a positive year for post-pandemic economics with the US dollar showing potential signs of recovery and inflation starting to dwindle.

There is growing concern about a possible recession. Here, we take a look at why some people believe that a recession is around the corner and how to stay in the know about important economic events.

Will the US economy face a recession in 2023?

There is a lot of debate over whether or not the US will face a recession in 2023. On one hand, the economy is starting to recover from global events and inflation continues to rise, with predictions of slow economic growth.

As it stands, over 20% of global economists predict a recession in 2023. The sentiment is much stronger amongst some US and European economists who fear the worst. Others predict that the recession will hold off for a few years but is still inevitable.

Preparing for a Recession

The best way to prepare for a potential recession is to stay up to date with the latest economic events. By doing this, you can spot the warning signs of a recession before it happens which could help you to protect your wealth.

A good way to do this is to use US economic calendar. An economic calendar is a free tool that provides a schedule of upcoming economic events, decisions and announcements. You could use the US economic calendar to keep an eye on economic indicators and use these to guide your financial decision-making.

By staying up to date with significant economic events, you could reduce your chances of being caught off guard. When a huge event happens, the market can move very quickly and those who aren't could easily get left behind.

Economic Growth, Imbalances and Political Instability

When a country experiences prolonged periods of slow economic growth, this can lead to a decline in consumer and business confidence. This typically results in decreasing investment and consumer spending. The reduction in spending can lead to a drop in economic activity which could eventually lead to a recession.

Financial imbalances occur when a country is in excessive debt. This can cause major economic instability as well as low confidence which could lead to a potential recession. Major financial imbalances can cause a sudden shift in the financial system which can artificially inflate the value of assets, leading to an unsustainable bubble. When this bubble eventually bursts, consumer and business confidence will typically decrease. It is this lack of confidence that could trigger a recession.

Another major factor that could contribute to a recession is political instability. Government problems and wars can slow economic activity and increase the chances of falling into a recession. Recently, the US has seen the collapse of major banks and is also fighting against Russia in Ukraine. The current political landscape has led some to believe that a recession is on the horizon.

Overall, it's important to note the signs of economic recession, as well as prepare and manage finances.