Experts warn of a coming recession in the United States | Matt Lillywhite
Several economic experts have recently warned that a recession in the United States is possible. For example, German Bank believes that the US economy will fall into recession due to the increase in interest rates by the Federal Reserve. Quoting a note that the bank sent to customers:
“The U.S. economy is expected to be hit hard by additional Fed tightening through the end of next year and into 2024. We expect two quarters of negative growth and an increase of more than 1.5% in the U.S. unemployment rate, developments that clearly qualify as a recession, albeit a mild one.”
Unfortunately, Deutsche Bank is not the only financial institution to worry about a coming recession. Goldman Sachs recently expressed concern over the crisis in Ukraine which is shocking the global economy and plunging the United States and Europe into recession. “We think the likelihood of a recession has increased in 2023.”
According to Forbes, “A recession is a significant drop in economic activity that lasts for months or even years. Experts declare a recession when a country’s economy experiences negative gross domestic product (GDP), an increase in levels of unemployment, a decline in retail sales and a contraction in income measures and manufacturing for an extended period of time.” So, if the United States experiences a recession in the next 18 to 24 months, job losses could lead to unemployment and business bankruptcy due to lower sales.
A recession would impact millions of American families. It will be difficult to get a mortgage if you don’t have excellent credit, as banks will tighten credit conditions. Citing an article published by Investopedia“Throughout the recession, lending standards in the market tend to be tighter and lenders are more selective about the risks they are willing to take, regardless of the interest rate.
It should also be noted that it will be difficult to find a job during a recession because of the high unemployment rate. As a result, there will likely be more competition for each available position.
Are you concerned about a recession in the United States? Let me know your thoughts in the comments section. And if you think more people should read this article, share it on social media.