Skip to main content

Is a recession coming soon?

We think that the economy is well-placed to handle higher interest rates and anticipate a period of weak economic growth rather than an outright recession: Rate-sensitive spending is a relatively small share of the economy right now, there are no egregious balance sheet vulnerabilities, and the extended period of shortages means that pent-up demand could keep the economy afloat for at least the next 12 months. Finally, a drop back in commodity prices should provide a modest boost to real incomes.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to gain:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services

Get access