Amazon founder Jeff Bezos has issued a stark warning about the fragile state of the global economy. In an interview with CNN, Bezos advised consumers and small businesses to hold off on significant purchases and capital expenditures as fears of a recession intensify. He also emphasized the importance of cautious financial planning during these uncertain times.
Optimism for the Future
While emphasising caution in the near term, Bezos maintained an optimistic outlook for the long-term prospects of the economy. He expressed confidence that the American Dream remains achievable and hinted that space travel could become more accessible to the public within his lifetime.
Bezos’ recent comments align with his social media post on X last month, where he urged industries to ‘batten down the hatches’ amid turbulent times ahead for both consumers and businesses. Many experts agree that adapting to these changes will be crucial for economic stability.
US Economy on the Brink of Recession
Moody’s chief economist, Mark Zandi, echoed Bezos’ concerns, warning that the US could be on the cusp of a recession. In a social media post, Zandi highlighted that nearly a third of US states—accounting for a significant portion of the country’s GDP—are either already in or at high risk of recession.
‘States making up nearly a third of US GDP are either in or at high risk of recession,’ Zandi stated. ‘Another third are just holding steady, and the remaining third are growing.’ The data presents a mixed picture, with some traditionally strong Southern states experiencing a slowdown.
States such as Wyoming, Montana, Minnesota, Mississippi, Kansas, and Massachusetts have been identified as exhibiting high recession risks. Meanwhile, economic challenges in the Washington, DC area—partly due to recent government job cuts—are also a concern.
Additionally, inflationary pressures are expected to persist into the coming years, further complicating economic recovery efforts.
Inflation and Economic Outlook
Zandi predicts that inflation could rise to 4% by 2026, exacerbating the ongoing cost-of-living crisis. This projection raises alarms about household budgets and purchasing power amid economic uncertainty.
Reassessing Immigration Policies
The US government’s restrictive immigration policies could also negatively impact the tech sector, according to Zandi. He urged lawmakers to safeguard access to global talent, especially in AI, software engineering, and data science.
‘If it feels like we’re coming to the end of the tariff increases, or like we’re going to get a more rational immigration policy, I think that would be a signal that the coast may be clear,’ he told Business Insider.
He primarily blamed economic struggles on rising US tariffs and immigration policies. ‘Tariffs are cutting increasingly deeply into the profits of American companies and the purchasing power of American households. Fewer immigrant workers means a smaller economy,’ Zandi concluded.
While there are cautious signs and serious concerns about the near-term economic outlook, many experts remain hopeful that thoughtful policy adjustments and innovation can help steer the economy toward a more stable future.
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Originally published on IBTimes UK
