Economic forecasts suggest more economic turbulence. The US has been in a recession and the recession is expected to continue, with the Conference Board expecting gross domestic product (GDP) to fall further by 0.5% in the fourth quarter of this year. He also expects the recession to continue into at least the second quarter of 2023. This was before the collapse of cryptocurrency trading platform FTX, which had profound downstream effects on investment portfolios and non-crypto companies. Other more optimistic forecasts, such as those from the Federal Reserve Bank of Philadelphia and S&P Global, are just positive for 2023, at 0.7% and 0.2%, respectively.
These macroeconomic indicators are also common outside the United States. Many – even the International Monetary Fund – have pointed to the rise in inflation due to rising energy prices in Europe, which is one factor, among others, contributing to the European Union’s recent forecast of of GDP nearly zero for all of 2023 This adds to the already long-term demographic challenge that there are too many aging people out of the workforce and not enough new entrants, which has dire implications for GDP growth.
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While these macroeconomic fundamentals are beyond your control, there is still much within your control. We must remember that we have substantial influence over our lives and do not need to be drawn into an economic spiral just because this is what might happen to the aggregate economy: We can still individually thrive during a famine.
Here are five tips for doing just that.
Optimize your wait. Make the most of your time each day, which could mean picking up a new skill or taking up freelance work that deploys your broader skill set. Especially with the emergence of artificial intelligence and automation, some tasks are becoming obsolete and other new creative opportunities are emerging, and you can capitalize on this trend by acquiring the skills to perform these tasks. There are substantial supply and demand mismatches in some parts of the job market, such as AI and cybersecurity jobs, so consider acquiring a new skill that you can put to work.
Reflect and take inventory. It’s all too easy to look at the circumstances we’re in personally or as a society and get concerned, but take stock of what’s going well and what you’re grateful for. The holidays are a particularly good occasion to do this. By putting your circumstances into perspective, you avoid many mental dens that could make you more anxious and disappointed, which sadly only amplifies the difficult circumstances even further. Even when circumstances seem bleak, remember what you have and what you’ve been through — it will inspire you to keep going.
Grow your network. Building relationships is part of the adventure we are on. Focus on people as real human beings, rather than potential doors of opportunity. People are doors indeed, but treating people in transactional ways warps your perspective on life and ends up closing those doors, because people don’t like being treated like vending machines. (Would you like it if people only talked to you based on what you could give them?)
Related: 5 reasons why 2023 will be a difficult year for global markets
Love small victories. We often focus on the big, flashy goals or aspirations but neglect what is immediately in front of us. We have way more agency than we give ourselves credit for! Whether you are looking after your own property or writing an excellent job report, demonstrating excellence in everything you do creates many more chances in the long run that produce truly fulfilling and fruitful employment opportunities.
Always crop a portion of your earnings for savings. Consider investing it in structurally sound digital assets. There is no substitute for setting aside resources each month, be it crypto or fiat, that you can tap into when you need them most. There will always be an element of the unpredictable in the world, so look at these savings as your down-market insurance policy. Even though cryptocurrencies have been in winter, all assets have struggled because the whole market is in a recession. But the future of major tokens, such as Bitcoin (BTC) and Ether (ETH), remains hopeful, and it’s only a matter of time before they pick up again. Additionally, as governments become more volatile and inflation continues to rise, cryptocurrencies can be a useful hedging and diversification strategy.
Don’t despair even when the economy is faltering. You and your family can still thrive!
Christos A. Makridis is a research affiliate at Stanford University and Columbia Business School and the chief technology officer and co-founder of Living Opera, a Web3 media technology and art startup. He received his doctorate in economics and management sciences and engineering from Stanford University.
This article is for general informational purposes only and is not intended to be and should not be relied upon as investment or legal advice. The views, thoughts and opinions expressed herein are those of the author alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.