Meaning: Vibecession refers to the disconnect between consumer sentiment and economic data.
Defining Vibecession
@bloombergopinion @Kyla Scanlon declares the ✨ #vibecession ✨ officially over #economy #econtok #recession ♬ original sound – Bloomberg Opinion
The term was coined in 2022 by Kyla Scanlon, an economic commentator and author of In This Economy? How Money and Markets Really Work.
“Vibecession is basically the disconnect between how well the economy is doing and how people feel about their financial standing,” she elaborates.
According to consumer sentiment metrics, nearly 50% of Americans say they’re financially worse off now than they were before the 2020 pandemic.
Yet, economic indicators tell a different story: the gross domestic product (GDP) and labor market are both strong (the unemployment rate has fallen 4.2 to 4.1% and is expected to hover around 4% in 2025), inflation has cooled significantly, and major retailers have announced price cuts, making good more affordable.
So why is everyone still angry?
“The economy is so extraordinarily personal, and people really hate inflation,” Scanlon explains.
Despite small improvements, inflation is still much higher than it was before the pandemic. Healthcare and childcare costs are soaring, and home ownership feels increasingly out of reach for anyone under 45.
So even if the economy seems to be stabilizing and everything seems on track, Americans will likely continue to feel a vibecession because their emotional and financial realities haven’t caught up with the broader economic recovery.
And the vibes could worsen depending on policy decisions. For instance, if President Donald Trump enacts high-rate tariffs on imported goods, as he proposed during his campaign, it could wipe out all the progress made to reduce inflation.
“If the president enacts the economic policies he proposed as a candidate, we’re not only going to have a vibecession—we’re going to have a real recession,” warns Jacob Channel, senior economist at LendingTree.
Read More: Is The ‘Vibecession’ Here To Stay? Here’s What Experts Say
So, What Can You Do To Counter The Vibecession Feels?
@staciarwilliams “In the journey towards success, our mindset plays a pivotal role. It shapes our perceptions, influences our behaviors, and determines our level of commitment in taking action. Having the right mindset can make the difference between soaring towards our goals or remaining stagnant.” #fyp #blacktiktok #blackexcellence #motivation #blackwomenoftiktok #entrepreneur #financialadvisor ♬ original sound – Stacia Williams
- Shift Your Mindset
True transformation begins within. So it’s time to shift from a scarcity mentality to one of abundance—replace “I don’t have” with “I am blessed.” Affirm your wealth: “I have abundance, I never lack, and I am the wealthiest woman.”
By redirecting your focus from limitations to possibilities, you open yourself to attracting greater opportunities and prosperity.
Remember, the universe operates in alignment with your energy and intentions, so when you embrace abundance as your reality, you align yourself with its limitless potential.
- Diversify Your News Diet
“Media literacy is important,” Scanlon says. “If you’re reading certain sources and staying in an echo chamber, it’ll be difficult for you to believe anything but bad news.”
But if you diversify, you’ll realize that “things are tentatively getting better. So, you, and we all, need to work on believing that.”
- Build Financial Resilience
Build or grow your emergency fund and aim for 3-6 months of living expenses to cushion against any economic uncertainty.
Prioritize paying down high-interest debt, which can drain your resources and limit your investment ability.
If homeownership feels out of reach, consider Real Estate Investment Trusts (REITs) as a way to invest in property without the upfront costs.
- Focus On Long-Term Investments
If you’re making investment decisions, focus on the bigger picture.
Historically, stocks have followed economic growth, and with the economy stabilizing, now’s the best time to invest in diversified index funds or ETFs (Exchange-Traded Funds).
Platforms like Ellevest offer resources tailored to women investors.
@businessadvices_ #wealthy #wealthymindset #entrepreneur #moneytips ♬ Stargazing (Slowed + Reverb) – Marcelo De Carvalho
- Invest In Yourself As A Black Woman
Join financial literacy groups or communities like The Budgetnista or Black Women Invest, which provide education and support for Black women navigating investments and wealth-building.
Consider working with a certified and culturally competent financial advisor who understands the unique financial challenges Black women face.
Progress, no matter how small, is still progress. Acknowledge milestones like paying off credit card debt, hitting your first-quarter savings goals, or making your first investment.
While the vibecession may feel overwhelming, small, consistent actions can help you regain control. As Scanlon puts it, “It’s about believing in your ability to thrive, even when the vibes are off.”
