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S&P Ratings: Odds of US Economy Avoiding Recession in 2023 Dimming

A man walks past the New York Stock Exchange, Wednesday, Sept. 21, 2022, in New York. IndiaWASHINGTON (Sputnik) – The chances the United States will be able to avoid a recession next year are dimming as rising commodity prices and rate hikes are expected to weaken spending in the country, Standard and Poor’s Global Ratings said in a press release on Monday.”With odds that the US economy will avoid recession over the next 12 months dimmed, we continue to expect the US will fall into recession in 2023,” S&P Global Ratings’ US Chief Economist Beth Ann Bovino said in the release. “We now expect GDP growth to weaken to -0.1% in 2023. Peak-to-trough US GDP will decline by 0.8%, a mild recession in line with the 1969/1970 recession.”Rising prices and interest rates in the United States are eating away at private-sector purchasing power, the release said.This April 13, 2019, file photo, shows homes in suburban Salt Lake City.  - Sputnik International, 1920, 28.11.2022Americas‘Collapse is Coming’: Experts Anticipate Sharp Decline in US Real Estate Prices17:14 GMTAlthough the US economy has been protected by some momentum this year, the biggest concern is what awaits in 2023, such as extremely high prices and aggressive rate hikes, which will weigh down on affordability and aggregate demand, the release said.Moreover, according to S&P Global Ratings, the conflict in Ukraine, tensions over Taiwan and China’s economic slowdown are contributing to the chances that the US economy may tip into a recession.S&P Global Ratings clarified that this update does not constitute a rating action about the US economy.

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