Reading a piece in Bloomberg new Economy (https://lnkd.in/eqYkKKMT) the US economy may be facing a series of "rolling recessions" instead of one large downturn, according to some economists. The housing sector has already entered a recession, while the manufacturing sector is also showing signs of decline. Tech companies that thrived during the pandemic are also cutting jobs due to weak sales and a fall in online ad revenue.
Apparently the ideal outcome from the central bankers and investors' point of view would be for this pattern of rolling recessions to continue, say Charles Schwab Corp. analysts. In this scenario, the service sector would experience weakness and the jobs market would cool down, but at the same time, the housing and manufacturing sectors would start to recover and eventually turn up.
So this made me wonder - What are the implications of this rolling recession for global decarbonisation and the efforts of businesses to address the climate crisis, nature loss and inequality? The reduction in economic activity will result in a slowdown in investment in clean energy and sustainability initiatives, making it even more challenging to achieve the necessary reductions in carbon emissions.
But possible solutions include a shift towards a more resilient and sustainable economic model, where investment in clean energy and sustainability is prioritized. Governments can also play a role by implementing policies that encourage the development and adoption of sustainable practices, including fiscal incentives and subsidies for clean energy projects.
In conclusion, while the rolling recession may result in a slowdown in U.S., and arguably global, economic activity, it also presents an opportunity to re-evaluate and redirect the economy towards a more sustainable future.
Eager to hear your thoughts. #cleanenergy#future