Recession concerns are growing worldwide amid mounting inflationary pressures, monetary policy tightening by central banks and the lingering effects of the Covid-19 pandemic.
The Institute of International Finance warned last month that the risk of a global recession is “rising sharply” amid a combination of shocks, including the effects of the Russia-Ukraine conflict on the eurozone, Covid-19 pandemic-related uncertainty in China and a gloomy outlook for the US economy.
The global economy, meanwhile, is projected to grow 2.3 per cent in 2022, compared with an earlier 4.6 per cent estimate, the IIF said in a May 26 report.
The International Monetary Fund also cut its growth forecast for the global economy to 3.6 per cent in 2022 and 2023.
More than 60 per cent of chief executives globally say they expect a recession in their primary region of operations before the end of 2023 or earlier, according to a June survey by US non-profit organisation Conference Board. Fifteen per cent of chief executives say their region is already in recession.
About 78 per cent of US employees fear losing their job during a recession, according to another June survey by staffing company Insight Global, which polled 1,000 workers.
Fifty-six per cent of American employees said they were not financially prepared or “don’t know how to prepare” for a recession, the survey found.
We asked personal finance experts for their advice on how consumers can prepare for a recession.
1. Reassess your budget
If you’ve never had a budget — or have one you never consult — either create one or review the one you have, says Steve Thompson, partner and financial planner at GSB Capital.
Knowing where your money is going helps you to prepare for and adjust to tough times ahead, he says.
“Start by looking at how you spend your money and figure out what you can cut out entirely — do you really need that monthly subscription to three gyms?” Mr Thompson says.
Evaluate your budget every month to see what expenses can be managed better or removed altogether, he says. There are plenty of spreadsheets online that can help with this.
Think about where you want your budget to be for a worst-case scenario and a best-case scenario and only buy what you really need. By reducing your spending, you’ll have money to prepare for a possible recession in other ways, he says.
Distinctly classify your expenses into needs, wants, and luxuries, says Damodhar Mata, a financial adviser in Dubai.
“Try to reduce your wants and luxuries to reduce your expenses. If possible and necessary, downgrade your lifestyle by a notch or two,” he says.
2. Contribute more to your emergency fund
Expect disruption to your business income or professional income during a recession, says Sharad Nair, executive vice chairman of Abalone Capital.
“It is critical to keep a minimum of 20 per cent and preferably 30 per cent of your net worth in cash as emergency funds,” he says.
“Pay attention to increasing your savings before an approaching recession. Check options of low-cost borrowing using your insurance-linked portfolio or personal investment portfolio for emergency funds.”
It is recommended to have a minimum of three months’ salary or living expenses and up to six months, where possible, in your emergency fund, Mr Thompson says.
“Try not to be overwhelmed in thinking about reaching that target, it might take a little longer to get there but that’s OK,” he says.
Even when a recession is officially announced, the real impact takes a while to set in, Mr Mata says.
Use this time to stock up on money to manage emergencies, a potential layoff or reduction in salary, he says.
Once you’ve slimmed down your extra expenses, build your savings account balance over the next few months by setting up an automatic transfer on a regular basis, Mr Thompson says.
“If you lose your job or have car troubles, you’ll have an emergency fund there to help you out. And if you end up not needing it, at least you’ll have a nice nest egg that you could use in any emergency in the future to cushion any further issues down the line,” he says.
3. Pay down high-interest debt
If you leveraged a credit facility to enhance your investment portfolio yields, this should be reduced to avoid margin calls, Mr Nair says.
Also keep your credit-card spending in check, he says.
“Keep an adequate cushion to pay home loans, personal loans and car loans. It is best to avoid leveraging in a high interest rate environment,” he says.
Pay down credit-card debt or any high-interest-rate debt you have. If something were to happen to your job, you’ll feel less under water if you owe less money overall, Mr Thompson says.
“Charging to a credit card should be a last resort since the interest rate is high, but it could dig you out of a hole. If you’ve paid down your credit card, you’ll owe less and have more money available to put towards your emergency fund,” he says.
Cash is king, Mr Mata says. Accumulate and hold as much cash as possible and keep it in an easily accessible interest-bearing account.
4. Enhance your employability
Learn Arabic or another language or skill that is in demand in your industry to make your position more valuable to your employer, Mr Mata says. Add more value to your employer and clients, making them think you are irreplaceable.
Consumers must look to plug leaks of income such as their home internet plans, cable subscriptions or weekly grocery expenses
Sharad Nair,
executive vice chairman, Abalone Capital
“Read non-fiction and self-improvement books to enhance your confidence and widen your knowledge,” he says.
“Enhance your professional image by improving your social media presence and by connecting and engaging with thought leaders in your industry.”
5. Review financial weaknesses
This is a good time to keep a check on your spending habits, Mr Nair says.
Consumers must look to plug leaks of income such as their home internet plans, cable subscriptions or weekly grocery expenses, he says.
It is also a good time to educate young children on spending habits for their future financial security, he adds.
6. Maintain your usual investments
Whether you already have a pension or investment portfolio in play, try to maintain your budgeted contributions, Mr Thompson says.
It can be intimidating to put money into investment funds while a recession is looming, but keeping up with these can benefit you in the long term, particularly when you are investing regularly, he says.
Families hunt for bargains amid rising prices globally — in pictures
“Remember that investing in the stock market is a long-term game,” Mr Thompson says.
“Also, during volatile times, try to avoid checking your performance each day to stay at ease with your future goals in mind.”
If the market takes a turn for the worse — the first half of 2022 was one of the worst since 1964 — consider riding it out for any upswings, Mr Thompson says.
“You don’t want to exit an investment strategy at the wrong time or price point,” he says.
7. Diversify your investments
It is critical to check your portfolio across insurance-linked investments and direct investments, Mr Nair says.
Diversifying your portfolio into assets such as equity, fixed income, real estate and cash instruments will reduce the effect of a recession.
Improve surveillance on the portfolio and stay invested, he says.
8. Spot and grab opportunities
A recession is the best opportunity to buy assets because you will find abundant distress sales in the market.
“This purchase could be a house, car, watch or equities in the stock market,” Mr Nair says.
“Except depreciating assets like cars, most assets would provide phenomenal appreciation once the recession has ended.”
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The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
KILLING OF QASSEM SULEIMANI
Terminal High Altitude Area Defense (THAAD)
What is THAAD?
It is considered to be the US' most superior missile defence system.
Production:
It was first created in 2008.
Speed:
THAAD missiles can travel at over Mach 8, so fast that it is hypersonic.
Abilities:
THAAD is designed to take out projectiles, namely ballistic missiles, as they are on their downward trajectory towards their target, otherwise known as the "terminal phase".
Purpose:
To protect high-value strategic sites, such as airfields or population centres.
Range:
THAAD can target projectiles both inside and outside of the Earth's atmosphere, at an altitude of 93 miles above the Earth's surface.
Creators:
Lockheed Martin was originally granted the contract to develop the system in 1992. Defence company Raytheon sub-contracts to develop other major parts of the system, such as ground-based radar.
UAE and THAAD:
In 2011, the UAE became the first country outside of the US to buy two THAAD missile defence systems. It then deployed them in 2016, becoming the first Gulf country to do so.
COMPANY PROFILE
Name: Lamsa
Founder: Badr Ward
Launched: 2014
Employees: 60
Based: Abu Dhabi
Sector: EdTech
Funding to date: $15 million
Forced%20Deportations
%3Cp%3EWhile%20the%20Lebanese%20government%20has%20deported%20a%20number%20of%20refugees%20back%20to%20Syria%20since%202011%2C%20the%20latest%20round%20is%20the%20first%20en-mass%20campaign%20of%20its%20kind%2C%20say%20the%20Access%20Center%20for%20Human%20Rights%2C%20a%20non-governmental%20organization%20which%20monitors%20the%20conditions%20of%20Syrian%20refugees%20in%20Lebanon.%3C%2Fp%3E%0A%3Cp%3E%E2%80%9CIn%20the%20past%2C%20the%20Lebanese%20General%20Security%20was%20responsible%20for%20the%20forced%20deportation%20operations%20of%20refugees%2C%20after%20forcing%20them%20to%20sign%20papers%20stating%20that%20they%20wished%20to%20return%20to%20Syria%20of%20their%20own%20free%20will.%20Now%2C%20the%20Lebanese%20army%2C%20specifically%20military%20intelligence%2C%20is%20responsible%20for%20the%20security%20operation%2C%E2%80%9D%20said%20Mohammad%20Hasan%2C%20head%20of%20ACHR.%3Cbr%3EIn%20just%20the%20first%20four%20months%20of%202023%20the%20number%20of%20forced%20deportations%20is%20nearly%20double%20that%20of%20the%20entirety%20of%202022.%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3ESince%20the%20beginning%20of%202023%2C%20ACHR%20has%20reported%20407%20forced%20deportations%20%E2%80%93%20200%20of%20which%20occurred%20in%20April%20alone.%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3EIn%20comparison%2C%20just%20154%20people%20were%20forcfully%20deported%20in%202022.%3C%2Fp%3E%0A
Violence%20
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Volvo ES90 Specs
Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)
Power: 333hp, 449hp, 680hp
Torque: 480Nm, 670Nm, 870Nm
On sale: Later in 2025 or early 2026, depending on region
Price: Exact regional pricing TBA
Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
On sale: Now
Price: From Dh590,000
MORE ON IRAN'S PROXY WARS
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%3Cp%3EThere%20are%20regular%20flights%20from%20Dubai%20to%20Kathmandu.%20Fares%20with%20Air%20Arabia%20and%20flydubai%20start%20at%20Dh1%2C265.%3Cbr%3EIn%20Kathmandu%2C%20rooms%20at%20the%20Oasis%20Kathmandu%20Hotel%20start%20at%20Dh195%20and%20Dh120%20at%20Hotel%20Ganesh%20Himal.%3Cbr%3EThird%20Rock%20Adventures%20offers%20professionally%20run%20group%20and%20individual%20treks%20and%20tours%20using%20highly%20experienced%20guides%20throughout%20Nepal%2C%20Bhutan%20and%20other%20parts%20of%20the%20Himalayas.%3C%2Fp%3E%0A
Uefa Nations League: How it works
The Uefa Nations League, introduced last year, has reached its final stage, to be played over five days in northern Portugal. The format of its closing tournament is compact, spread over two semi-finals, with the first, Portugal versus Switzerland in Porto on Wednesday evening, and the second, England against the Netherlands, in Guimaraes, on Thursday.
The winners of each semi will then meet at Porto’s Dragao stadium on Sunday, with the losing semi-finalists contesting a third-place play-off in Guimaraes earlier that day.
Qualifying for the final stage was via League A of the inaugural Nations League, in which the top 12 European countries according to Uefa's co-efficient seeding system were divided into four groups, the teams playing each other twice between September and November. Portugal, who finished above Italy and Poland, successfully bid to host the finals.
How much do leading UAE’s UK curriculum schools charge for Year 6?
- Nord Anglia International School (Dubai) – Dh85,032
- Kings School Al Barsha (Dubai) – Dh71,905
- Brighton College Abu Dhabi - Dh68,560
- Jumeirah English Speaking School (Dubai) – Dh59,728
- Gems Wellington International School – Dubai Branch – Dh58,488
- The British School Al Khubairat (Abu Dhabi) - Dh54,170
- Dubai English Speaking School – Dh51,269
*Annual tuition fees covering the 2024/2025 academic year
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UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
The Perfect Couple
Starring: Nicole Kidman, Liev Schreiber, Jack Reynor
Creator: Jenna Lamia
Rating: 3/5
Golden Shoe top five (as of March 1):
Harry Kane, Tottenham, Premier League, 24 goals, 48 points
Edinson Cavani, PSG, Ligue 1, 24 goals, 48 points
Ciro Immobile, Lazio, Serie A, 23 goals, 46 points
Mohamed Salah, Liverpool, Premier League, 23 goals, 46 points
Lionel Messi, Barcelona, La Liga, 22 goals, 44 points
Killing of Qassem Suleimani
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
'Panga'
Directed by Ashwiny Iyer Tiwari
Starring Kangana Ranaut, Richa Chadha, Jassie Gill, Yagya Bhasin, Neena Gupta
Rating: 3.5/5
Company%20Profile
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'Saand Ki Aankh'
Produced by: Reliance Entertainment with Chalk and Cheese Films
Director: Tushar Hiranandani
Cast: Taapsee Pannu, Bhumi Pednekar, Prakash Jha, Vineet Singh
Rating: 3.5/5 stars
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
SHAITTAN
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3EVikas%20Bahl%3Cbr%3E%3Cstrong%3EStarring%3A%20%3C%2Fstrong%3EAjay%20Devgn%2C%20R.%20Madhavan%2C%20Jyothika%2C%20Janaki%20Bodiwala%3Cbr%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E3%2F5%3C%2Fp%3E%0A
Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
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Read more about the coronavirus
Gothia Cup 2025
4,872 matches
1,942 teams
116 pitches
76 nations
26 UAE teams
15 Lebanese teams
2 Kuwaiti teams
UEFA CHAMPIONS LEAGUE FIXTURES
All kick-off times 10.45pm UAE ( 4 GMT) unless stated
Tuesday
Sevilla v Maribor
Spartak Moscow v Liverpool
Manchester City v Shakhtar Donetsk
Napoli v Feyenoord
Besiktas v RB Leipzig
Monaco v Porto
Apoel Nicosia v Tottenham Hotspur
Borussia Dortmund v Real Madrid
Wednesday
Basel v Benfica
CSKA Moscow Manchester United
Paris Saint-Germain v Bayern Munich
Anderlecht v Celtic
Qarabag v Roma (8pm)
Atletico Madrid v Chelsea
Juventus v Olympiakos
Sporting Lisbon v Barcelona
Hurricanes 31-31 Lions
Wellington Hurricanes:
Tries: Gibbins, Laumape, Goosen, Fifita tries, Barrett
Conversions: Barrett (4)
Penalties: Barrett
British & Irish Lions:
Tries: Seymour (2), North
Conversions: Biggar (2)
Penalties: Biggar (4)
The specs: 2018 Infiniti QX80
Price: base / as tested: Dh335,000
Engine: 5.6-litre V8
Gearbox: Seven-speed automatic
Power: 400hp @ 5,800rpm
Torque: 560Nm @ 4,000rpm
Fuel economy, combined: 12.1L / 100km
A list of the animal rescue organisations in the UAE
FA Cup semi-finals
Saturday: Manchester United v Tottenham Hotspur, 8.15pm (UAE)
Sunday: Chelsea v Southampton, 6pm (UAE)
Matches on Bein Sports
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
MATCH INFO
Uefa Champioons League semi-final, first leg:
Liverpool 5
Salah (35', 45 1'), Mane (56'), Firmino (61', 68')
Roma 2
Dzeko (81'), Perotti (85' pen)
Second leg: May 2, Stadio Olimpico, Rome
WOMAN AND CHILD
Director: Saeed Roustaee
Starring: Parinaz Izadyar, Payman Maadi
Rating: 4/5
UK-EU trade at a glance
EU fishing vessels guaranteed access to UK waters for 12 years
Co-operation on security initiatives and procurement of defence products
Youth experience scheme to work, study or volunteer in UK and EU countries
Smoother border management with use of e-gates
Cutting red tape on import and export of food
RESULT
Al Hilal 4 Persepolis 0
Khribin (31', 54', 89'), Al Shahrani 40'
Red card: Otayf (Al Hilal, 49')
ENGLAND SQUAD
Goalkeepers Pickford (Everton), Pope (Burnley), Henderson (Manchester United)
Defenders Alexander-Arnold (Liverpool), Chilwell (Chelsea), Coady (Wolves), Dier (Tottenham), Gomez (Liverpool), James (Chelsea), Keane (Everton), Maguire (Manchester United), Maitland-Niles (Arsenal), Mings (Aston Villa), Saka (Arsenal), Trippier (Atletico Madrid), Walker (Manchester City)
Midfielders: Foden (Manchester City), Henderson (Liverpool), Grealish (Aston Villa), Mount (Chelsea), Rice (West Ham), Ward-Prowse (Southampton), Winks (Tottenham)
Forwards: Abraham (Chelsea), Calvert-Lewin (Everton), Kane (Tottenham), Rashford (Manchester United), Sancho (Borussia Dortmund), Sterling (Manchester City)
What can you do?
Document everything immediately; including dates, times, locations and witnesses
Seek professional advice from a legal expert
You can report an incident to HR or an immediate supervisor
You can use the Ministry of Human Resources and Emiratisation’s dedicated hotline
In criminal cases, you can contact the police for additional support
Pakistan World Cup squad
Sarfraz Ahmed (c), Fakhar Zaman, Imam-ul-Haq, Abid Ali, Babar Azam, Haris Sohail, Shoaib Malik, Mohammad Hafeez(subject to fitness), Imad Wasim, Shadab Khan, Hasan Ali, Faheem Ashraf, Junaid Khan, Shaheen Shah Afridi, Mohammad Hasnain
Two additions for England ODIs: Mohammad Amir and Asif Ali
UAE currency: the story behind the money in your pockets
