As the economy continues to recover from the effects of the COVID-19 pandemic, many experts are beginning to speculate about the possibility of a recession looming on the horizon.
While it is impossible to predict the future with certainty, it is important to consider the industries that may be able to weather the storm if a recession were to occur. In this article, we will take a look at some of the industries that are being considered as “recession proof” and are expected to see growth in 2023.
What does “Recession Proof” mean?
Recession proof industries are those that tend to remain stable or even grow during economic downturns. While no industry is completely immune to the effects of a recession, certain sectors are more resilient than others.
1. Legal Services
Legal services are another industry that tends to do well during recessions. As the economy slows down, there is often an increase in legal disputes, bankruptcies, and foreclosures. This means that the demand for legal services, such as lawyers, paralegals, and other professionals, tends to increase during times of economic uncertainty.
Healthcare is an essential service that is always in demand, regardless of the state of the economy. People will always need medical care, and during a recession, they may even be more likely to put off elective procedures or other non-essential treatments. This means that hospitals, clinics, and other healthcare providers tend to do well during recessions.
3. Grocery Stores
People will always need food, and during a recession, they may be even more inclined to cook at home instead of dining out. This means that grocery stores tend to do well during recessions.
4. Online Retail
Online retail has been growing rapidly in recent years, and it is expected to continue to do so. Even during a recession, people may still buy products online as it is often more convenient and cheaper than buying from physical stores.
5. Wedding Industry
Weddings are a significant life event that often take place regardless of the state of the economy. Even in difficult financial times, people still want to celebrate their love and commitment with family and friends. This means that the wedding industry, which includes venues, catering, photography, wedding jewellery and rings, and other services, tends to remain relatively stable during recessions.
6. Home Improvement
As people tend to stay in their homes more during a recession, they may focus on making improvements to their homes. This can include everything from basic repairs to full-scale remodels, which is why home improvement stores and contractors tend to do well during economic downturns.
It is important to note that no industry is completely immune to the effects of a recession. However, by understanding which industries have historically been more resilient during economic downturns, we can gain a better understanding of where to focus our investment and job search efforts.
While a recession in 2023 is not a certainty, it is a possibility, and it is always wise to be prepared. As the economy continues to evolve, it will be interesting to see which industries are able to not only survive but thrive in the face of adversity.