A recession is coming in 2023, but it will be modest, relatively short, and not one that causes credit union leaders to hit the panic button, according to CUNA economists.
“We think the operating environment is going to become more challenging,” CUNA Chief Economist Mike Schenk said during a breakout session Tuesday at CUNA Governmental Affairs Conference. “Don’t run for your lives. Run for your members’ lives. As financial first responders, we run toward problems and solve them. We use our capital to get members through the tough times.”
The economic environment will impact credit unions operationally in three ways:
“We think there will be a recession, but it will be modest, relatively short, and deep,” he says. “But there’s no reason to hit the panic button. Staying engaged and lending money in this environment will be important.”
CUNA Senior Economists Dawit Kebede and Ligia Vado also offered foresight into trends that are impacting consumers’ behavior and the economic environment. Key takeaways included:
►Visit CUNA News for more conference coverage. Get live updates on Twitter via @CUNA_News, @cumagazine, @cuna, and #CUNAGAC. Follow the conference on Facebook and Instagram and visit cuna.org/gac for more information.