S&P sharply worsens forecast for US economy

S&P Global Market Intelligence expects the US economy to enter recession in the fourth quarter of this year, Report informs referring to the Financial Times.

According to the results of the next year, the country’s GDP will decrease by 0.5%. Thus, the company seriously worsened its own forecast for the dynamics of the US economic development. Previously, S&P predicted the growth of the US economy in 2023 by 0.9%.

Hurricane Ian is among the negative factors affecting the US macroeconomic indicators, due to which GDP growth in the fourth quarter will decrease by 0.1%. In addition, the recession will be facilitated by the increase in key rates with rising inflation, as well as hostilities in Ukraine.

The US economy will begin to recover in the third quarter of 2023, S&P predicts.

Other financial companies also gave a negative outlook on the state of the US economy. In particular, the head of JPMorgan Chase, Jamie Dimon, said that the US could be in a recession in the next 6-9 months. At the same time, Dimon noted that consumer activity and the state of the US economy are now generally better than during the 2008 global financial crisis.