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All You Need To Know About Rolling Recession and Why Experts Think America is Experiencing it.

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All You Need To Know About Rolling Recession and Why Experts Think America is Experiencing it.

All You Need To Know About Rolling Recession and Why Experts Think America is Experiencing it.

A rolling recession describes an economy that experiences an economic contraction over a long period of time or an economy that is in a state of prolonged decline. This decline is not necessarily a sudden or sharp drop, but rather a slow and steady decline that can last for several months or even years.

This type of recession shifts from sector to sector, rather than affecting the entire country at once. This is what experts believe is currently happening in the U.S., with some states, sectors, and areas experiencing a recession while others are still doing relatively well. This type of recession can be difficult to reverse, as businesses are hesitant to invest until they see a sustained increase in consumer spending.

Indicators of a Rolling Recession

A rolling recession is characterized by periods of low growth or even a decline in GDP and a decrease in consumer confidence. Slow business investment, high unemployment rates, rising prices, and an overall decrease in economic activity are characteristics of a rolling recession.

The following indicates that a country is experiencing a rolling recession

  1. Stagnant or declining GDP:  a significant impact on GDP, as a result of a decrease in economic output which lowers tax revenues and increases government spending, causing an increase in the budget deficit. This in turn, further weakens economic activity, leading to a further decrease in GDP.
  2. Low consumer confidence: This is a result of people’s uncertainty about the future and their worry about their jobs and incomes. They are more likely to save their money rather than spend it, leading to a decrease in economic activity.
  3. A decrease in investment by businesses: as the risk of larger losses increases and the potential for future profits diminishes, businesses are more likely to reduce their spending on capital investments and research and development, leading to stagnation or decline in economic growth. This is because businesses are uncertain of the future and are not willing to take risks with their money until the economy is more stable.
  4. High unemployment: Rolling recessions exacerbate high unemployment rates by reducing job opportunities, as businesses that are uncertain of the future tend to reduce the hiring of new employees. This leads to a decrease in the total number of jobs available, resulting in fewer people being employed and fewer people having the ability to pay their bills.
  5. Decrease in overall economic activity: when there are fewer jobs available, less money is spent on goods and services, which in turn reduces demand for those goods and services. This leads to a decrease in the number of businesses producing those goods and services, which further reduces the number of jobs available.
  6. Decrease in wages: As fewer businesses reduce their output and lay off workers, the remaining workers take on a larger workload, and they are often forced to accept lower wages in order to keep their jobs. This reduces the overall wages of the working population, resulting in an economic downturn.
  7. Increase in poverty: As the wages of the working population decrease, more people are pushed into poverty. The rising cost of living combined with lower incomes leads to greater economic insecurity and an inability to afford basic necessities such as food, shelter, and healthcare. This leads to increasing levels of poverty and inequality.

Why Experts Think America is Experiencing a Rolling Recession

A “rolling recession” has become a popular term in America since the recession that began in early 2022. It is characterized by a period of weak economic growth and a lack of job creation. It is a result of the social and economic effects of the Coronavirus pandemic, trade tensions, and political uncertainty.

Since the U.S. Federal Reserve began lifting interest rates from zero in March 2022, the U.S. has been experiencing a rolling recession. This means that there is no possibility that the economy will survive without having to endure a contraction. The first sector to be hit was housing. This is because the sector is already vulnerable due to the steep run-up in property prices during the pandemic. This had put buying a home out of reach for many Americans. Next was manufacturing as the index of factory production has declined for five months straight through January. This is a result of customers shifting from spending on goods to spending on services such as vacations and restaurant meals. Last month, 3M Co., said that it plans to cut about 2,500 manufacturing jobs.

The Tech companies prospered during the pandemic, but now have weak sales and falling online ad revenue. According to Bloomberg, over 97,000 job cuts were announced in the industry last year. Currently, over 67,000 jobs have been eliminated since Jan. 1, 2023, an indication that this year’s layoffs will outstrip those of last year.

Also, a deceleration in economic activity and inflation, but no widespread downturn is evident in the U.S. Things haven’t gotten worse since consumers are the main bulwark of the economy. Although the customers were squeezed last year by higher prices for gas, eggs, and everything else, Mastercard Inc. Chief Executive Officer Michael Miebach in a Jan. 26 earnings statement said “While macroeconomic and geopolitical uncertainty persists, consumer spending has been remarkably resilient.”

This is not the first time the U.S. has suffered a rolling recession. It was experienced in the mid-1980s and in 2016. This time around, according to Charles Schwab Corp. analysts Liz Ann Sonders and Kevin Gordon, if the rolling recession continues, the weakness in the economy would extend into the service sector even though other sectors have started to stabilize, the hot job market would cool and this would allow the US expansion to continue while paving the way for a further fall in inflation.

 

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BUSINESS

African Development Bank signs $45 million grant agreement with Chad for asphalting of the Kyabé-Mayo road section

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African Development Bank signs $45 million grant agreement with Chad for asphalting of the Kyabé-Mayo road section

The African Development Bank (www.AfDB.org) and the government of Chad have signed a grant agreement worth $44.9 million to finance the asphalting of the 49.5-kilometre Kyabé-Mayo section of the Kyabé-Singako road, including the construction of a 55-metre bridge.

The agreement was signed in N’Djamena on 19 February 2025 by Tahir Hamid Nguilin, Minister of State for Finance, Budget, Economy, Planning and International Cooperation, and Claude N’Kodia, the Bank’s Acting Representative in Chad. Several members of the Chadian government were also present, including the Minister for Infrastructure, Access-Improvement and Road Maintenance, Amir Idriss Kourda, and the Secretary of State for Finance and Budget, Ali Djadda Kampard. Also present was a delegation from the International Monetary Fund, led by its head of mission for Chad, Julien Reynaud,

African Development Bank signs $45 million grant agreement with Chad for asphalting of the Kyabé-Mayo road section

African Development Bank signs $45 million grant agreement with Chad for asphalting of the Kyabé-Mayo road section

The funding will support one of the Chadian government’s key development objectives through strategic infrastructure improvement.

“The [Moyen-Chari] region, including Kyabé, Singako and Am Timan, has strong economic potential. It is Chad’s main agricultural basin and livestock area, rich in fish resources. Fish are supplied from Moyen-Chari to a large part of the country’s south and even to foreign markets,” stated Nguilin, also the Bank’s Governor for Chad.

The road project will open up southern and eastern regions of Chad, reduce vulnerability, and strengthen the resilience of local populations, especially women and young people. It will improve the transportation of goods and people between Kyabé and Singako by providing an all-weather road, facilitating the flow of agricultural and animal products from the rich areas of Moyen-Chari and Salamat to the consumer centers of Sarh, Moundou, N’Djamena and Abéché. It will also enhance accessibility to Moyen-Chari from neighboring Sudan.

The agreement paves the way for support from the Islamic Development Bank to finance the second section of the 205-kilometer Mayo-Singako-Am Timan at an estimated cost of $275.5 million.

“The African Development Bank is a strategic partner of Chad, particularly in the transport sector. The construction of the road section will reduce the overall cost of transport in Moyen-Chari […] and improve the living conditions of local people thanks to easier access to health and education facilities and to the country’s main consumer centers,” said N’Kodia.

The Kyabé-Mayo section of the Kyabé-Singako road is one of the missing links in the N’Djamena-Moundou-Sarh-Kyabé-Am Timan-Abéché corridor and forms part of the priority structuring network that the Chadian government aims to develop to ensure nationwide coverage and permanent accessibility.

The African Development Bank Group remains a strategic financial partner for Chad, with its strategy paper focusing on two priority pillars: developing infrastructure to achieve strong and diversified economic growth and promoting good governance to increase the effectiveness of public action and the attractiveness of the economic environment.

Distributed by APO Group on behalf of African Development Bank Group (AfDB).

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The International Islamic Trade Finance Corporation (ITFC) Maintains Leadership in Global Ranking of Islamic Syndications for 4 Consecutive Years

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The International Islamic Trade Finance Corporation (ITFC) Maintains Leadership in Global Ranking of Islamic Syndications for 4 Consecutive Years

The International Islamic Trade Finance Corporation (ITFC) Maintains Leadership in Global Ranking of Islamic Syndications for 4 Consecutive Years

The International Islamic Trade Finance Corporation (ITFC) (www.ITFC-IDB.org), a member of the Islamic Development Bank (IsDB), has reinforced its position as a key player in the Islamic syndications market, achieving prominent rankings in the 2024 Bloomberg and Refinitiv League tables.

The International Islamic Trade Finance Corporation (ITFC) Maintains Leadership in Global Ranking of Islamic Syndications for 4 Consecutive Years

The International Islamic Trade Finance Corporation (ITFC) Maintains Leadership in Global Ranking of Islamic Syndications for 4 Consecutive Years

For the fourth consecutive year, the ITFC top-tier performance reflects a strategic focus on delivering impactful trade finance solutions. For 2024, Refinitiv ranked ITFC as Globally # 1 Bookrunner and Mandated Lead Arranger (MLA) in their Islamic Syndications League table. Additionally, and Bloomberg also ranked ITFC among the top Bookrunners and MLA in the Islamic Syndications League table. These rankings are a testament to the ITFC ability to consistently deliver value-driven results and maintain a strong position among leading international and regional financial institutions.

The recognition from Refinitiv and Bloomberg confirms that ITFC is a key player in facilitating trade among OIC member countries. This not only reaffirms the ITFC status as the pre-eminent provider of trade solutions but also underscores its remarkable ability to draw investments from a wide spectrum of global investors and financial institutions.

Additionally, it emphasizes the positive impact on the lives and livelihood of people inherent in the ITFC business operating model, demonstrating its effectiveness in meeting the unique financial needs of OIC member countries.

The Refinitiv and Bloomberg League tables rank banks and financial institutions based on their performance in loan syndications, bonds, and mergers and acquisitions (M&A) transactions. The rankings, including arrangers, bookrunners, administrative agents, and advisors, are published quarterly and annually.

Distributed by APO Group on behalf of International Islamic Trade Finance Corporation (ITFC).
About the International Trade Finance Corporation (ITFC):
The International Islamic Trade Finance Corporation (ITFC) is a member of the Islamic Development Bank (IsDB) Group. It was established with the primary objective of advancing trade among OIC member countries, which would ultimately contribute to the overarching goal of improving socioeconomic conditions of the people across the world. Commencing operations in January 2008, ITFC has provided more than US$83 billion of financing to OIC member countries, making it the leading provider of trade solutions for these member countries’ needs. With a mission to become a catalyst for trade development for OIC member countries and beyond, the Corporation helps entities in member countries gain better access to trade finance and provides them with the necessary trade-related capacity building tools, which would enable them to successfully compete in the global market.

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Network International appointed as Payment Processing Partner by MTN Group Fintech

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Network International appointed as Payment Processing Partner by MTN Group Fintech

Network International (Network) (www.Network.ae), a leading enabler of digital commerce across the Middle East and Africa (MEA), has been appointed as a Payment Processor – Issuing partner for MTN Group Fintech, Africa’s leading mobile financial services provider. This partnership marks a significant extension of Network’s portfolio of issuer processing collaborations throughout the African continent.

Network International appointed as Payment Processing Partner by MTN Group Fintech

Network International appointed as Payment Processing Partner by MTN Group Fintech

With a footprint spanning over 50 countries and serving over 250 financial institutions, Network International brings its expertise to this partnership which will enhance MTN Fintech’s cutting-edge mobile services and provide even greater value to stakeholders and customers across Africa.

The partnership will focus on rolling out card issuance products across key MTN Fintech markets, starting with Rwanda which is already operational. Soon   Uganda, Ivory Coast, and Nigeria will also be covered under this collaboration.  Network International will provide a comprehensive range of services, including transaction processing, card management and online fraud prevention. MTN Fintech users will benefit from a seamless experience accessing both traditional mobile services and innovative digital payment solutions.

Dr. Reda Helal, Group Managing Director – Processing, Africa and Co-Head Group Processing at Network International commented: “Our collaboration with MTN Group Fintech marks a major milestone for our outsourced payments services in Africa. It demonstrates our ability to successfully serve Mobile Network Operators (MNOs) via our fully-fledged processing solutions and our continued dedication and commitment to the African region. We are excited to support MTN Group Fintech’s growth strategy, and its business development plans across the continent.”  

Cedric N’guessan, Executive for Payment and E-commerce at MTN Group Fintech added, “This collaboration with Network International is pivotal in enhancing financial inclusion across Africa and beyond. It enables our customers to actively engage in the global economy, aligning perfectly with our strategic goals alongside Mastercard to broaden access to digital financial services across the continent.” Read More (https://apo-opa.co/43aKuII)

MTN Group provides voice, data, fintech, enterprise wholesale and API services to more than 288 million customers in 14 African markets.

Distributed by APO Group on behalf of Network International.
About MTN Group Fintech:
MTN Fintech, the platform business of MTN Group, is dedicated to revolutionising global financial services through innovative digital technology solutions. Leveraging MTN’s extensive reach and expertise in telecommunications, MTN Fintech is committed to advancing financial inclusion for all and empowering communities in Africa. With a primary focus on pioneering mobile financial services, digital payments, e-commerce, short-term insurance, and remittance capabilities, MTN Fintech strives to establish seamless, accessible, and secure financial ecosystems that shape the future of digital finance.

About Network International:
Network International is the Middle East and Africa’s largest and leading digital payments company. Our purpose is to help businesses and economies grow by simplifying payments and commerce. We operate in 50+ countries serving governments, banks, fintechs, merchants and public sector companies. We have 2,000+ employees based in our markets serving over 250 financial institutions and 130,000+ merchants.

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