Florida to Face a Recession in 2023

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Yes, no, maybe? We don’t know... or do we know?

More experts have come out saying Florida will certainly face a recession soon.

The upcoming recession in Florida could last six to nine months. This warning has come with a promise of a soft landing and a mild economic downturn.

However, they claim that the likelihood of a more severe downturn, one that would result in millions of job losses, has been increasing in recent weeks.

Some economists place the blame on the Federal Reserve, which is boosting interest rates in an unwavering effort to control inflation, even if doing so might cause a recession.

“If the Fed keeps raising rates, it could cause more damage,” says Bob Schwartz, senior economist at Oxford Economics.

Aside from these issues, economists also point to the worsening economic conditions in Europe, the potential for this winter’s COVID-19 lockdowns in China, a sharp slowdown in the housing market in the United States, and even a job market that has been so resilient that it is driving the Fed to take even more daring action.

According to the estimates of Wells Fargo Chief Economist Jay Bryson, a mild recession may cost the economy 1.8 million jobs if the nation’s gross domestic product, or economic output, decreases by 1.2% and the unemployment rate increases from a 50-year low of 3.5% to 5.4%.

On the other hand, a severe recession could cost 3 million to 4 million jobs. This is a 2% to 2.5% decline in GDP with a 7% unemployment rate. The latter paints a bleak picture.

Most economists are predicting a mild slump because companies and consumers are in good shape financially and can keep spending even if the economy weakens and some people lose jobs.

We’re yet to see how credit card debt influences this recession. Hopefully, consumers will become more mindful of where they spend their money.

Are you worried about the upcoming recession?

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