Outlook For 2022 - 2023 Doesn't Look Good
We aren’t seeing wages rising above inflationary levels so a wage-price growth spiral seems unlikely at the moment. Whilst Western economies were awash with central bank printed cash it has mostly ended up inflating assets (property and shares) rather than in the pockets of the average member of the public; some cash savings were built up during the pandemic (due to support measures and enforced economic inactivity) but those surpluses seem to have been unwound fairly quickly as economies reopened, leaving little to drive demand-side inflation.
The outlook for 2022-2023 doesn't look good, as we get closer to winter it looks like it will be getting a lot worse, especially when we are going to see more energy price hikes. The cracks are now starting to show in the economy after the pandemic. It looks like many businesses are already starting to suffer and it won't be too long before we start seeing some of them closing their doors for good.
The housing market is already slowing down with all that pent-up demand disappearing, I think most of us knew it wouldn't last. Unfortunately, these are going to be very tough times for a lot of people. There is a lot of talk about there being food shortages in the upcoming months which is a major concern. The longer this war goes on with all the sanctions the West has imposed on Russia are going to have a huge effect on all of us.
It looks like we are heading into recession officially this year, although I think we are already in one. Do you think we will see global economies collapse in the near future?
Please share your thoughts?