What is vibecession and what does it have to do with the economy?

Vibecession—a neological term coined in 2022 by economist Kyla Scanlon—states that feelings are real. They are a genuine indicator of people’s attitudes toward their country’s economy.

What is vibecession?

Vibecession, created from the terms ‘vibe’ and ‘recession’, is a recent global trend that refers to the disconnect between a nation’s economy and its citizens' negative outlook toward it. This term refers to a sentiment where the public has a low opinion of the country’s economy and sees no hope for improvement, despite statistical indications suggesting otherwise.

In layman's terms, vibecession is like a recession but based on public opinions and perceptions instead of facts and statistics. Countries with strong economic growth can still be in vibecession. A country doesn’t actually have to be in recession to be in ‘vibecession’; the citizens just feel like they’re in one.

Why do people feel like there’s a recession?

The global economy is recently going through several tumultuous events—the rampant global layoffs, the rate cuts of major banks, the recessions happening all across the world—have left nothing but the common masses worrying about their economic and financial statuses.

Another major reason is the discrepancies between the GDPs (Gross Domestic Product) and GDIs (Gross Domestic Incomes) of several nations.

Even though several countries are seeing an improvement in their economy, consumers face trouble managing expenses. The inconsistent layoffs, lack of employment, increasing prices, inflation, and geopolitical tensions globally give the consumers a ‘negative vibe’.

Experts worry that such a low consumer outlook can put a country in actual recession.

Countries in vibecession in 2024

According to a recent poll carried out by SurveyMonkey, less than 50% of citizens are optimistic about their country’s economic growth.

Over 4,000 citizens in the U.S., Mexico, Australia, Singapore, the U.K., Spain, France, Switzerland, and Germany are worried about their finances.

Mexico ranked highest with 73% of its citizens having a pessimistic outlook toward their country’s economic future and are deeply concerned about raising prices. Spain follows with 72%, the U.S. and Australia with 70% each, the U.K. with 63%, Germany with 57%, Switzerland with 55%, Singapore with 49%, and France with 48%.