The world had just recovered from the pandemic and the resultant financial distress only to see more financial uncertainty from the ongoing geopolitical conflict between Russia and Ukraine. If that was not enough, the imminent threat of recession has led to companies laying off employees in thousands across the globe. Almost two-thirds of the members of the World Economic Forum’s Community of Chief Economists believe that recession will hit the globe in 2023, as the symptoms continue to linger from late 2022. The International Monetary Fund (IMF) has also predicted the incoming recession this year. What is Recession? A recession is a significant and widespread decline in economic activity that lasts for an extended period, typically at least two consecutive quarters (six months) of declining Gross Domestic Product (GDP). During a recession, businesses tend to reduce production, leading to layoffs and increased unemployment, while consumers cut back on spending. This…
