What could Arizonans experience in 2023 as recession fears intensify?

Already there’s been discussion about an incoming recession, but some economic analysts say that we’re already experiencing one.
Published: Sep. 27, 2022 at 8:27 AM MST
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PHOENIX (3TV/CBS 5) - Inflation, gas, interest: all things that have seen a sharp rise in recent months.

Already there’s been discussion about an incoming recession, but some economic analysts say that we’re already experiencing one. Economist Elliott Pollack, CEO of Elliott Pollack and Company, dropped by Good Morning Arizona to answer some of your questions.

“We are either in a recession or we’ll be in one shortly,” said Pollack. “If we don’t get rid of inflation, the economy is going to be in a permanent malaise,” Pollack said that he anticipates 2023 to be the year we’re nationally in a recession and that eventually, prices will start coming down. In terms of how the Valley economy will be impacted, he believes that a lot of consumer spending will slow down.

“Psychologically by seeing layoffs, seeing people lose their jobs, it’s going to be a difficult situation,” Pollack said. “2023 is not going to be a pleasant year, especially if you’re in an interest-sensitive sector. If you’re in housing, if you’re related to the auto industry; those ripples will come across the entire economy.”

Pollack believes, however, we will not see things take as bad a turn as in the Great Recession. To prepare, he says, “Get as liquid as you can. Cut back unnecessary expenditures until you know you’re in good shape. It depends on the nature of your job, if you’re in a very stable situation...you’re probably going to have a reasonable 2023.”