Elon Musk, the CEO of Tesla and SpaceX, warned that the US is heading for a recession. Earlier, similar warnings were given by former US President Donald Trump, analysts at Goldman Sachs, and Nouriel Roubini, an economist and professor at New York University.

“A recession is inevitable at some point. As to whether there is a recession in the near term, that is more likely than not,” Musk said. 

According to Goldman Sachs, there is a 20-30% probability of a recession in 2023, as well as a 48% cumulative probability in the next two years. “We are increasingly concerned that the Fed will feel compelled to respond forcefully to high headline inflation and consumer inflation expectations if energy prices rise further, even if activity slows sharply,” the report said.

Nouriel Roubini expects the US economy to enter a recession by the end of this year, as indicated by declining consumer confidence, retail sales, manufacturing activity, and housing data amid high inflation.

Earlier, US President Joe Biden downplayed pessimistic outlooks on the US economic growth and called recession avoidable. He stated Americans were “really, really down” after experiencing the COVID-19 pandemic, economic instability, and a sharp hike in gasoline prices over the past two years.