Economists and investors are bracing for 2024, which might see slower growth with the possibility of a mild recession. 

Jeffrey Korzenik, a Chief Economist with Fifth Third Bank, says the new year may see its fair share of ups and downs regarding the stock market’s stability and economy. While he says a possible recession is on the horizon, he notes that it would be very mild and nowhere near as disruptive as the 2020 or 2008 economic downturn.    

Korzenik advises business owners to take the proper steps to weather a possible economic downturn and ensure they have a plan in place if the economy falls into recession. This includes remaining cautious about laying off employees. Cutting your headcount too much could result in a brain drain, and Korzenik says with baby boomers retiring at record levels, the labor pool is not as deep as it was during previous recessions. 

Even though 2024 could be a more challenging year for small businesses, Korzenik encourages owners to focus on innovating, staying competitive, and not be afraid to look for talent that may have been laid off by competition.  

As banks prepare for a possible economic downturn, Korzenik says banks are tightening their lending standards, and loans may be more difficult to come by in 2024. Banks are working hard to hedge any possible recession by minimizing their risk. Small business owners should make sure they are not overextending themselves and keeping a stockpile of any capital they may need in the new year.