Founder of Amazon, Jeff Bezos has warned the United States of America of a recession in the coming months. Speaking to CNN, Bezos warned American consumers that they should consider delaying big purchases in the holiday season as an economic recession might be around the corner.
“Take some risk off the table…Keep some dry powder on hand…..Just a little bit of risk reduction could make the difference for that small business if we do get into even more serious economic problems. You’ve got to play the probabilities a little bit.” said the 58-year-old.
Although Bezos was quite specific to give this advice to the Americans, several other international organisations have stated the possibility of the same for the rest of the world too.
The likes of the World Trade Organisation, United Nations, and World Bank have also openly stated their apprehension regarding the cash flow in the market, in the coming months.
IMF warns the world
The International Monetary Fund has said that the global financial stability risks have increased and it has resulted in a higher risk of contagion and increased stress in the market. According to a report by the World Economic Forum, the fund has recognised higher interest rates, food crises, and war-driven energy as the causes of the rise in such a situation.
“The three largest economies, the United States, China, and the euro area, will continue to stall… In short, the worst is yet to come, and for many people, 2023 will feel like a recession,” said Pierre-Olivier Gourinchar, chief economist at, International Monetary Fund.
UNCTD warns of a worse recession than 2008
The United Nations Conference for Trade and Development released its report for the year 2022. In that report, the organisation stated that the fiscal and monetary policies in developed countries have increased the risk of a global recession. The report also claims that the future recession will be capable of causing worse damage than the financial crisis of 2008.
The Report sees the rise in interest rates, the COVID crisis, and the Russia – Ukraine war to be a cause for the global economic slowdown. In the last decade, Central Banks have constantly fallen short of meeting their inflation targets. The report sees their efforts to change so by increasing the rate of interest as an ‘imprudent gamble’.
A Press release by the World Bank has cited similar reasons for the economy to fall in the next year. The study by the World Bank has stated that financial crises have the capability of causing long-term harm to developing economies. The report also stated that the trend is expected to be the same for the next few months.