Global Recession Affecting US, EU, Australia, and New Zealand: How To Be Recession Resilient?

The global economy is facing a recession, with the United States, European Union, Australia, and New Zealand all being affected. The recession is being caused by a number of factors, including the COVID-19 pandemic, the war in Ukraine, and rising inflation.

In this article, we will discuss the factors that are causing the global recession, and we will provide tips on how individuals and businesses can be more recession resilient. We will also discuss some additional tips that can help you weather the storm of an Australian recession.

Factors Contributing To Global Recession

Here are the factors that cause the tech recession -

COVID-19 pandemic

The COVID-19 pandemic has had a significant impact on the global economy, causing widespread economic disruptions and job losses. The pandemic led to lockdowns and travel restrictions, which disrupted supply chains and caused businesses to close. The pandemic also led to a decrease in consumer spending, as people were less likely to go out and shop.

War in Ukraine

The war in Ukraine has also had a negative impact on the global economy, leading to higher energy prices and increased uncertainty. The war has disrupted energy supplies from Russia, which has led to higher prices for oil and gas. The war has also increased uncertainty about the future of the global economy, which has made businesses less willing to invest.

Rising inflation

Inflation is rising in many countries, which is putting a strain on household budgets and businesses. Inflation is caused by a number of factors, including rising energy prices, tech downturn, supply chain disruptions, and increased demand. Inflation is making it more expensive for people to buy goods and services, which is reducing their disposable income.

Tips to Become Recession Resilient

There are a number of things that individuals and businesses can do to be more recession resilient. These include:

Build an emergency fund

An emergency fund can help you cover unexpected expenses, such as job loss or medical bills. A good rule of thumb is to have enough money in your emergency fund to cover three to six months of living expenses.

Live within your means

This means spending less than you earn and avoiding debt. If you have debt, focus on paying it off as quickly as possible.

Invest for the long term

Investing for the long term can help you build your wealth and weather economic downturns. A good way to invest for the long term is to invest in index funds, which track a broad market index.

Diversify your investments

This means investing in a variety of assets, such as stocks, bonds, and real estate. This will help to reduce your risk if one asset class performs poorly.

Protect your credit score

A good credit score can help you get a loan or mortgage in a EU recession. You can protect your credit score by paying your bills on time and keeping your credit utilization low.

Ending Note

A recession can be a difficult time, but it is important to remember that it is not the end of the world. By taking steps to be recession resilient, you can protect yourself and your family from the worst effects of the global recession.