Economists predict recession in America in 2023
Financial analyst Chris Hopkins says recession could help tame inflation
CHATTANOOGA (WDEF) — Many national economists and financial experts believe the United States will enter a recession at some point in 2023.
Apogee Wealth Partners Principal and Co-Founder Chris Hopkins says the “general consensus” among most is that we will see a recession soon, but believes this is not necessarily a bad thing — saying that a recession could eventually help current inflated prices return to pre-pandemic standards.
Hopkins says it’s ironic that because America’s “economy is so strong,” it needs to be cooled down.
He says the problems lie in the “rapid recovery” from COVID, which has led to the worst inflation the U-S has seen in 40 years.
“It’s essential that we get inflation back down to the two or three percent that we’ve seen for the last 40 years,” Hopkins said. “The only way to really do that is to cool off the economy. That’s a recession — when an economy stops growing and maybe backs up a step or two.”
Additionally, Bank of America Chief Economist Michael Gapen recently said in a CBS News interview that he believes America will enter a recession but one “is not guaranteed.”
He says inflation is already on a “downward trend” and is “optimistic” for the future of America’s economy.
“We’ve got a problem with inflation now,” Gapen said. “We will likely risk recession in 2023. But beyond that, I think it’s still a very positive outlook for the U.S.”
Hopkins understands that when many hear the word “recession,” they immediately shudder at the thought of 2008.
But Apogee’s co-founder says a minor recession could let America’s economy “catch its breath” while inflation rates eventually return to normal.
“It’s possible that at the end of 2023, the economy will have actually grown a little or at least maintained,” Hopkins said. “But that increase in unemployment and the higher interest rates will help us tame inflation without a really serious setback in the overall economy. That’s entirely possible.”
Hopkins does understand that some families may be impacted, particularly if unemployment rates rise.
This year especially, he advises reviewing your budget and cutting out needless expenses.