The United States has been in a recession for several years already. It started when the country decided to shut down for the pandemic. That was a government created recession with people losing their jobs because businesses like restaurants and travel were closed. Today, we are enter a more traditional recession. One of slowing economic growth, decreasing stock market and rising interest rates.
Some parts of the economy will eventually work themselves out. The supply chain will eventually stabilize once China gets back to normal and we establish traditional trading norms. The price of some goods will decrease while other prices will remain high.
There are a lot of things still disrupting the global economy:
- Lower Chinese manufacturing capacity. China's harsh stance on Covid.
- The Russia-Ukraine War increasing food prices.
- Russian sanctions on oil driving up the price.
- Lack of raw materials for new vehicles.
These items will continue to effect the global economy for years.
1. Lower GDP - Gross Domestic Product
The GDP decreased by 1.6 percent for the first half of 2022. This is understandable. The price of everything has increased as well as the interest rate. It is more expensive than ever to start a new business or try to grow a young currently operating business.
It will continue to get harder to open new businesses as the interest rate continues to increase. The cost of loans go up. The number of qualified borrowers goes down.
The supply chain is also a mess. It would be more difficult to start a new product business if you cannot get anything manufactured, because of the supply chain backlog.
You could start a service business, but there is a shortage of workers.
