Are we headed towards a recession?

May 18, 2022|Michael Famoroti

Go on Twitter and everyone is so sure we are either in or heading towards a recession.

Everyone living in the United States (US) at least, whether by physical address or Twitter timeline. Former Goldman Sachs CEO Lloyd Blankfein said at the weekend that the US economy risks entering a recession this year. Economists surveyed by the Wall Street Journal in April estimated a 28% probability of a recession in the next twelve months, more than double the probability in April 2021. Even Twitter’s would-be acquirer Elon Musk tweeted last December that he anticipates a recession in Summer 2022.
 

Key takeaways:

  • The likelihood of a recession in the next 12 months keeps increasing as business leaders such as Elon Musk and Lloyd Blankfein weigh in on the market contraction trends we have been observing

  • However, a good way to predict the financial future is by looking at company prices. The Nasdaq has fallen by 33% this year and it is unlikely to have a positive close come end of 2022.

  • Nigeria has had two recessions in recent times already, and the tough economic conditions the country faces today signals that things are about to get tougher.

 

When the US economy sneezes, we all catch a cold, reason alone for us to be worried about the Nigerian economy without even thinking about our internal problems from rising unemployment & insecurity to poor public finances & stalling governance.

Is Nigeria also heading towards a recession? Are we already in one? Is the US?

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