Elon Musk, the CEO and creator of Tesla, believes that the global economic recession might last for another 18 months.
The world’s wealthiest man and mercurial electric car boss said that the recession would last “till spring of ’24” in a conversation on Twitter early on Friday morning Eastern time.
The comments were made in response to a tweet from Billy Markus, a founder of Dogecoin, who goes by the online alias Shibetoshi Nakamoto, who said that the present coronavirus rates “are really fairly low. I suppose the only things we need to be concerned about right now are the approaching global recession and nuclear catastrophe.
Musk said, “It definitely would be lovely to have a year without a terrible worldwide tragedy.
When asked how long he believed the recession would remain by Tesla Owners Silicon Valley, a Twitter account with over 600,000 followers, Musk responded, “Just guessing, but probably till spring of ’24.”
The International Monetary Fund predicts that after expanding by 6% in 2021, the global GDP would slow to 3.2% this year and 2.7% in 2023. With the exception of the temporary decline during the early days of the Covid epidemic and the 2008 financial crisis, it would be the slowest rate of growth since 2021. The U.S. GDP is expected to rise by only 0.2% this year and 1.2% in 2023, according to the Federal Reserve.
Elon Musk is the newest business mogul to voice concerns about the state of the economy.
Jeff Bezos, the founder of Amazon, advised his followers on Wednesday to “batten down the hatches” in anticipation of upcoming economic turbulence. The tweet was sent with a video of David Solomon, the CEO of Goldman Sachs, stating in an interview with CNBC that he believes there is a “good possibility” that the United States could experience a recession.
Jamie Dimon, the CEO of JPMorgan Chase, has also issued warnings about impending economic turbulence.
In addition, Musk’s remark came after Tesla shares had a difficult week after the carmaker missed sales projections and issued a warning about a likely delivery shortage this year.
He was more optimistic about the American economy than the economies of other nations on the analyst call. He did mention how the economy is being impacted by rising interest rates.
He said, “The United States truly is in – North America’s in very excellent health. “Some of it is pushing interest rates up a bit higher than they should, but I believe they’ll understand that soon and bring back down, I hope.”
He did note that Europe “had a recession of sorts, driven by energy,” while China is in “quite a boom of a recession of sorts,” fueled by the real estate sector.
Source: CNBC