Tesla CEO Elon Musk broke his silence on the current global meltdown on Friday, saying the recession the world is currently experiencing due to multiple macroeconomic factors could last up to 18 months.
“Based on past experience, about 12 to 18 months,” Musk said in response to a question from a follower about how long he thinks the recession will last.
“Companies that are inherently negative cash flow (i.e. value destroyers) need to die, so that they stop consuming resources,” he added.
The World Bank’s David Malpass warned this week that Russia’s ongoing invasion of Ukraine could spark a global recession by driving up the prices of food, energy, and fertilizer.
“As we look at the global GDP, it’s hard right now to see how we avoid a recession… The idea of energy prices doubling is enough to trigger a recession by itself,” he was quoted as saying in media reports.
The World Bank cut its global economic growth forecast for this year by nearly a full percentage point last month, to 3.2%.
Fertilizer, food, and energy shortages are also affecting developing countries.
The latest round of lockdowns has hit China the hardest. The Covid-19 measures have caused a significant slowdown in economic activity throughout the country.
According to Hayman Capital’s chief investment officer, the United States could enter a recession before the end of the year or in early 2023.
Foreign portfolio investors have withdrew approximately Rs 2.5 lakh crore from the Indian equity market.
Moody’s Investors Service, a global financial services provider, has reduced India’s GDP projection for 2022 to 8.8 percent, down from 9.1 percent previously.
The Russia-Ukraine war, high inflation, Covid-19 lockdowns in China, and rising interest rates are the causes of the global economic slowdown.
