RT.com
06 Aug 2022, 16:44 GMT+10
A global downturn is a possibility, but only in the case of a major geopolitical crisis
The US is not headed into a "big recession," but a mild downturn is possible, billionaire Tesla and SpaceX owner Elon Musk said on the 'Full Send' podcast this week.
"I don't think we're headed into a big recession. It could be a mild recession that lasts for a couple of years," he suggested, reiterating the prediction he made earlier this week at the Tesla 2022 shareholders' meeting, where he said the US is "past peak inflation" and likely to see a "relatively mild recession" lasting for about 18 months.
On the podcast, Musk stated that a global recession is also a possibility. It would depend on the geopolitical situation and could be triggered by some kind of major geopolitical event, he said, referring to the situation between China and Taiwan.
"The thing that is hard to predict is... if there's a war between China and Taiwan. That would send the world into recession. That's a possibility - something like a big, big event."
Since the beginning of the year, the US has seen rapidly rising inflation and a drop in the GDP. In the first quarter of 2022, the US economy shrank by 1.6%, and in the second, by a further 0.9%. Inflation rose to 40-year highs, to 9.1% year-over-year as of June - leading the US Federal Reserve to raise interest rates, while US stocks have been dropping and large companies, like Musk's Tesla, have been forced to announce large-scale layoffs to cut costs.
READ MORE: Twitter accuses Elon Musk of lying
While many economists have been warning of a recession, others claim the US economy still has the resources to pull through, and the National Bureau of Economic Research, the agency that declares when the US officially enters a recession, has not done so yet.
For more stories on economy & finance visit RT's business section
Get a daily dose of Business Sun news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Business Sun.
More InformationNEW YORK, New York -U.S. stock markets closed with broad gains on Thursday, led by strong performances in U.S. tech stocks, while European...
MENLO PARK, California: Robinhood is giving European investors a new way to tap into America's most prominent tech names — without...
NEW YORK, New York - U.S. stocks diverged on Wednesday for the second day in a row. The Standard and Poor's 500 hit a new all-time...
VENICE, Italy: Over the weekend, hundreds of protesters marched through the narrow streets of Venice to voice their opposition to billionaire...
NEW YORK CITY, New York: The U.S. dollar continues to lose ground, weighed down by growing concerns over Washington's fiscal outlook...
SANTA CLARA, California: Executives at Nvidia have quietly been cashing in on the AI frenzy. According to a report by the Financial...
SANTA CLARA, California: Executives at Nvidia have quietly been cashing in on the AI frenzy. According to a report by the Financial...
BEIJING, China: China's national soccer team may struggle to stir excitement, but its humanoid robots are drawing cheers — and not...
WASHINGTON, D.C.: On Friday, President Donald Trump announced that he was halting trade discussions with Canada due to its decision...
FRANKFURT, Germany: Germany has become the latest country to challenge Chinese AI firm DeepSeek over its data practices, as pressure...
SAN FRANCISCO, California: Under pressure from European regulators, Apple has revamped its App Store policies in the EU, introducing...
Florida [US], July 4 (ANI): Pilot Shubhanshu 'Shux' Shukla, part of the international Axiom Mission 4 crew aboard the International...