Last Updated on 1 year by Komolafe Bamidele
I’m very sure you’re already feeling the impact of economic reception or downtime.
If you don’t know what it means then you need to read this information for the article to the end,
because I will explain all the necessary information that you need to know about the predicted economic recession that will likely occur this year or next year.
If you want to know about the 2023 economic global recession then you need to read this informative article to the end.
What Economic Recession?
The National Bureau of Economic Research (NBER) defines a recession as a significant decline that lasts for more than a few months and affects the broader economy, not a particular sector because every industry will experience its impact
The recession is the period between the peak of economic activity and the economy’s lowest point.
In most cases, it is relatively brief. Since World War II ended, the average recession has lasted within 10 months.
Over the years, NBER doesn’t call an economic decline an actual recession until six to 18 months after the recession’s start.
So the consumers will start to experience its effects long before it becomes official.
What Causes an Economic Recession
There are several causes of economic recession but currently, these are the major causes of economic recession in any country or globally.
Economic Shocks
Unpredictable events are some of the major causes of widespread economic disruption, like natural disasters or terrorist attacks, war etc.
The latest example is the fast recession that occurred as a reaction to the COVID-19 outbreak.
Deflation and Inflation
The opposite of inflation is deflation because Immediately product and asset prices fall due to a large drop in demand.
As demand falls, so do prices fall also as sellers want to attract buyers. Consumers will have to experience a downward trend and wait for those prices to fall, further reducing demand.
The downward spiral reduces economic activity while increasing unemployment because it causes an ongoing downward spiral or slow economic activity and greater unemployment.
Loss of Consumer Confidence
You don’t need anyone to tell you that consumers will begin to lose confidence because they will begin to worry about the state of the economy.
So they slow their spending and save whatever money they can. About 70% of GDP depends on consumer spending, the entire economy can drastically slow.
High-Interest Rates
High-interest rates are also one of the major causes of recession because it makes it expensive for consumers to borrow money.
So that consumers will have less to spend, especially on major purchases like houses or cars.
A lot of companies will reduce their spending and growth plans because the cost of financing is too high.
What Happens During an Economic Recession?
Consumer Spending
One of the major things that usually happens during an economic recession is that consumer spending is majorly shifted to any sales including retail sales,
The number of money consumers spends on goods and services will be drastically reduced during the recession, because people will have less money to spend during the period.
After all, there will be much unemployment and fewer or no economic activities.
Industrial Production/Manufacturing
During an economic recession, there is a high cost of raw materials, so businesses will cut back on production, and manufacturing activity declines.
This change will lead to a decrease in exports and an overall decrease in economic activity.
Unemployment
During a recession, the unemployment rate will drastically increase. A lot of companies in several sectors will begin to cut back on staff so that they can reduce their expenses to stay in the market.
Will This Recession See Massive Layoffs?
All economic recession always comes with a higher rate of unemployment, those who are employed before the recession will lose their job because a lot of companies across all sectors will lay off most of their workers.
So that they can reduce their expenses so that they will be able to stay in the market and not go bankrupt.
So what might be good precautions to survive this coming recession 2.0? Digital Marketing I guess…..
Will a Recession Affect Digital Marketing Jobs
The digital marketing industry and other online business industries are some of the few industries that could see little or no effect from economic recession even if it is a global recession.
There are several advantages that make the digital marketing industry recession-proof.
One of these advantages is that fewer people are involved, so there is little or no unemployment during the recession in the digital marketing industry.
Likewise, online business owners will still have enough products or services to sell to their customers during the economic recession because there is little process of manufacturing.
I’m quite sure that courses about digital marketing and how to make money online will definitely sell more.
How Blogging About Recession in 2023 Could Get You RICH!
For bloggers that want to prepare for the recession that will occur last this year and next year 2023.
You need to prepare so that the economic recession will not affect you as a blogger rather than help you to become a better person and make more money during the economic recession.
Because Of the Coronavirus pandemic, a lot of rich people like Jeff Bezos, Ceo of Amazon, make more money, which is why millions of people around the world lost their jobs and are hungry.
The best thing you can do as a blogger is to prepare for the economic recession because you can’t stop it from happening.
Follow the instructions below, if you want to prepare for the economic recession as a professional or part-time blogger.
#1. Shift your content to the kind of content that better fit your audience during an economic recession
Several changes occurred during the economic recession. Things are not normal as they used to be, especially for the working class and business people.
So if you keep posting your regular content on your blog, then it won’t go as far as it used to because a lot of people are now thinking of different topics and they want new content during the recession.
Now you need to post content that is related to the situation on the ground.
Regardless of your niche, you need to help people in the economic recession by providing a lot of information that they need to save and manage the little money they have with them to even make money.
You can write content on free or low-cost parking spaces, to let your audience save money for parking their cars.
Likewise low-cost house rent for your audience that finds it so difficult to pay the normal house rent during a recession.
This is the kind of content that will attract millions of people to be searching for on the internet because they are in a critical economic situation.
#2. Getting More Traffic to your Website
It is very important to get more traffic to your website because there will be fewer people on the internet because their attention is on other aspects.
People will want less entertainment-related content. Likewise, they won’t search for normal products or services they used to buy before.
So the number of internet users will reduce drastically, although it may increase in some aspects like online purchases or e-commerce and other related aspects,
because a lot of businesses and companies will shut down and the only method of buying things will be from the online stores.
You need to invest in advertisements so that you will be able to drive traffic to your website.
#3. Video Consultation or Audio Consultation
If you don’t do video or audio consultations before, you need to start so that you will be able to reach out to more audiences and generate enough revenue for yourself during the recession.
You can organize daily or weekly podcasts so that you will be able to make money on advertisements or sponsorship on your podcast.
#3. Plan your Time
For those who were not full-time bloggers before the recession, you can continue your normal job if you are not yet laid off.
#4. Reinvest your Income
If your major source of income is from your blog, then you need to reinvest as much as you can so that you will be able to increase your blog value.
With the regular investment, you will be able to spend on content creation, advertisement, and other necessary aspects that will increase your growth within a short or long time.
#5. Multiple Sources of Income
A lot of bloggers focus on advertisement revenue and affiliate marketing, to prepare for the reception you need to add more sources of income,
because advertisements and affiliate marketing revenue will reduce due to the economic recession.
You can add several sources of income like consultation, sponsorship, donation, info products like a book, podcast videos, and more.
For those who are not bloggers, you can start a blog before the recession and focus your attention on creating economic recession-related content, especially information that an average person needs during a recession.
A lot of people made millions of dollars during the Coronavirus pandemic because they began to create content that helped everyone to stay safe during the period.
You can also do the same and you will be able to make more than enough money during this upcoming global economic recession.
In Conclusion
Now you know the necessary information about the predicted global economic recession that will occur next year.
As a blogger what is necessary to do, so that you will be able to stay at the top of your game even during the economic recession?
Likewise, those who are yet to start a blog can create a lucrative niche about economic recession and how to survive the economic recession in 2023.