1. PixelPlaygroundHome
  2. Blockchain Briefs

Goldman Sachs Raises Probability of US Economy Entering a Recession

• Blockchain Briefs • 106 views

Goldman Sachs Raises Probability of US Economy Entering a Recession

According to reports, Goldman Sachs has raised the probability of the US economy falling into recession within the next 12 months by 10 percentage points to 35%.

Goldman Sachs raised the probability of a recession in the US economy within a year by 10 percentage points to 35%

Analysis based on this information:


Goldman Sachs, one of the largest investment banks in the world, has raised the likelihood of the US economy falling into a recession within the next 12 months, increasing the probability by 10 percentage points to 35%. This report is concerning as a recession can lead to job losses, decreased economic growth, and negative global impacts.

A recession is defined as a significant decline in economic activity, which is typically characterized by a fall in Gross Domestic Product (GDP) for two consecutive quarters. The US economy has been experiencing continual growth for over a decade and now faces new challenges. The COVID-19 pandemic, which emerged at the beginning of 2020, has impacted economies worldwide, including the US, by causing economic growth to slow down. Despite the government’s efforts to stimulate the economy in the form of stimulus packages, the US economy still faces considerable risks related to decline in consumer demand and unemployment.

There are various reasons why Goldman Sachs raised the possibility of a recession in the US economy. One reason is that the ongoing COVID-19 pandemic remains a significant source of uncertainty. We don’t know when vaccines will be widely available, and if new variants of the virus emerge, which could lead to further economic disruptions. Additionally, the economic recovery from the pandemic is expected to be bumpy and uneven, with some sectors potentially struggling more than others. Some sectors, like travel and hospitality, have already been negatively affected and may continue to struggle in the short term.

Another risk to the US economy is rising inflation. Inflation happens when prices of goods and services increase, reducing the purchasing power of consumers. This situation could worsen if supply chain disruptions from the pandemic lead to shortages, which could lead to higher prices. The other risk is the worsening of trade relations between the US and China, as trade tensions and tariffs imposed by both countries can weaken the global economy.

In conclusion, the report that Goldman Sachs has raised the likelihood of a recession in the US economy to 35% within the next 12 months is concerning. The COVID-19 pandemic, inflation-related risks, and trade tensions with China are potential triggers for a downward turn. It is essential to consider these risks carefully and to monitor the ongoing situation regularly.

Reference:

Recession, Retrieved from https://www.investopedia.com/terms/r/recession.asp.

This article and pictures are from the Internet and do not represent Fpips's position. If you infringe, please contact us to delete:https://www.fpips.com/6737/

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.

Like (0)
Previous 03/16/2023 04:58
Next 03/16/2023 05:05

Recommended articles