Global Recession May Last For 18 Months Elon Musk

Elon Musk

Breaking his silence on the current global slowdown, Tesla CEO Elon Musk on Friday said that the world is now facing a recession due to several macro-economic factors that could last up to 18 months.

Musk responded to a follower who asked him how long he thought this recession would last, to which he said, “about 12 to 18 months, based on past experience.”

“Companies that are inherently negative cash flow (i.e. value destroyers) need to be dismantled, so that they stop consuming resources,” he said.

World Bank chief David Malpass warned this week that Russia’s ongoing invasion of Ukraine could trigger a global recession as food, energy and fertilizer prices soared.

He was quoted as saying in media reports, “As we look at global GDP, it’s hard to see right now how we survive a recession. The idea of ​​doubling energy prices in itself is enough to trigger a recession.” “

Last month, the World Bank slashed its global economic growth forecast for this year by a nearly full percentage point to 3.2 percent.

Developing countries are also being affected by shortage of fertilizers, food and energy.

China has suffered heavy losses due to the latest round of lockdown. The COVID-19 measures have led to a sharp slowdown in economic activity across the country.

According to the Chief Investment Officer of Heyman Capital, the US may hit a recession before the end of this year or early 2023.

In India, foreign portfolio investors have pulled out around Rs 2.5 lakh crore from the Indian equity market.

Global financial services provider firm Moody’s Investors Service has slashed India’s GDP forecast for 2022 to 8.8 per cent, from 9.1 per cent earlier estimated.

The Russo-Ukraine war, high inflation, the COVID-19 lockdown in China and rising interest rates have led to the disruption of economic activity around the world.

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