Influencers expect onset of global economic recession amid central banks tapering, reveals GlobalData

The risk of the global economic downturn is looming large as the compounding strain of Omicron is threatening the pandemic recovery. Meanwhile, the Federal Reserve System plans to scale back its bond-buying program or the fiscal stimulus amid surging inflation and rising unemployment. Against this backdrop, influencer conversations around ‘Recession’ has spiked up by 100% in Q4 (Oct-Dec) 2021, when compared to the previous quarter, according to the Social Media Analytics Platform of GlobalData, a leading data and analytics company.

Smitarani Tripathy, Social Media Analyst at GlobalData, comments: “Twitter influencers opine the onset of the global economic recession in recent time, as the key central banks including the US Fed, Bank of Japan, European Central Bank and the Bank of England are expected to raise interest rates while tapering the quantitative easing or money supply, as the emergence of omicron has made the global economic outlook more uncertain with rising inflation and disturbed supply chain.”

Below are a few most popular tweets captured by GlobalData’s Social Media Analytics Platform:

  1. Matthew Yglesias, Writer, and Editor at Slow Boring

“ I think implicitly he was assuming the Fed wouldn’t tolerate inflation this high and would end up provoking a recession to avoid it.

  1. Peter Schiff, Chief Economist and Global Strategist at Euro Pacific Capital, Inc.

“#Inflation continues to exact a heavy toll on consumers, as higher prices caused Sept. spending to rise by .6% even as incomes collapsed by 1%. Stimulus funded savings are rapidly depleting. The economy will soon be in recession without more stimulus. That means higher inflation.

  1. Kaushik Basu, Professor of Economics and C. Marks Professor

“I propose the term “breakaway recession” for what’s happening in many nations.—The bottom half of society is in recession, while total GDP grows. Brazil, Philippines, India, Peru are heading to breakaway recession. US also has risk; depends on its handling of the Omicron wave.”

  1. Joe Weisenthal, Editor at Bloomberg

“I’m not a fan of “induce a recession to reduce inflation/prick bubbles” macro. But I appreciate the acknowledgment that that’s the channel through which rate hikes could “work.” Wish more people calling for the Fed to act on inflation would admit that that’s their prescription.”

  1.  Luke Gromen, Founder and President of Forest For The Trees

“After talking over the holidays with a number of people that make stuff and move stuff for a living, it is becoming increasingly apparent that likely the only way we have seen peak supply chain disruptions & peak inflation pressures is if we have a fairly nasty recession, soon.”

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