The American economy isn’t looking great right now. U.S. GDP shrank last quarter, despite a hearty showing from American consumers. Inflation is high; markets are down; both wages and personal-savings rates show some troubling statistical signals. Is the U.S. destined to have a recession in 2022? I don’t know for sure. But here are nine signs that worry me.
Recession is coming for Europe. The U.K. economy is shrinking, and the central bank says inflation will exceed 10 percent this year. War in Ukraine has sent energy prices skyrocketing throughout Europe, and most economists believe that the continent’s economy will contract this year.
Europe seems very likely headed toward both stagnation and inflation the dreaded combination that, 50 years ago, gave birth to the awful term stagflation. If Europe shrinks while Chinese growth decelerates, American exporters will have a hard time contributing to growing GDP. Just an "Awful" thought.
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