A global slowdown is a possibility, but only in the event of a major geopolitical crisis
The United States is not heading for a “great recessionbut a slight slowdown is possible, Tesla billionaire and SpaceX owner Elon Musk said on the “Full Send” podcast this week.
“I don’t think we’re heading into a big recession. It could be a mild recession that lasts a few years,he suggested, reiterating the prediction he made earlier this week at Tesla’s 2022 general meeting of shareholders, where he said the United States is “last inflation peakand likely to see a “relatively mild recession” lasts about 18 months.
On the podcast, Musk said a global recession is also a possibility. It would depend on the geopolitical situation and could be triggered by some sort of major geopolitical event, he said, referring to the situation between China and Taiwan.
“What is difficult to predict is… if there is a war between China and Taiwan. It would send the world into recession. It’s a possibility – something like a big, big event.”
Since the beginning of the year, the United States has experienced a rapid rise in inflation and a decline in GDP. In the first quarter of 2022, the US economy contracted by 1.6%, and in the second by another 0.9%. Inflation hit 40-year highs of 9.1% year-on-year in June, leading the US Federal Reserve to raise interest rates, while US stocks fell and large corporations , like Musk’s Tesla, have been forced to announce large-scale layoffs to cut costs.
Twitter accuses Elon Musk of lying
While many economists have warned of a recession, others say the U.S. economy still has the resources to pull through, and the National Bureau of Economic Research, the agency that declares when the U.S. United officially enter recession, has not done so yet.
For more stories on economics and finance, visit RT’s business section
You can share this story on social media: