The economy’s tepid growth has many Americans worrying about the next financial slowdown. Some experts even see signs of a recession — defined by two consecutive quarters of negative GDP growth, resulting in declining businesses and jobs and a sour mood among consumers.
In recent weeks, warning signals have tripped: Stocks have slumped, consumer confidence has dropped, and layoffs are ticking up. Google searches for “recession” have hit a new peak since the COVID-19 pandemic, and fears are fueled by oil price shocks, high inflation and restrictive monetary policy.
But a recession is still far from certain. The National Bureau of Economic Research, which designates peaks, troughs, expansions and contractions in the business cycle, doesn’t think the US is currently experiencing one. And while a recession may be inevitable at some point, it’s also possible to avoid one if we take the right steps.
Boosting savings, cutting unnecessary spending and paying down debt are all smart moves that can help you stay afloat during a recession. And a healthy credit score can make it easier to qualify for loans and get better rates when the market improves again.
About the Author
