Post the evolution of COVID the global economy has slipped into the grip of a serious slowdown. The alarm from some major economies signifies a possible risk of recession in a year or so.
According to Richard Kelly, head of global strategy at TD Securities the possibility of the US heading towards a recession is greater than 50 %. Kelly has mentioned three possible ways how it could get hit.
As per him, rising gas prices accompanied by a hawkish Federal Reserve and a slowing economy are the risk that the world’s largest economy is facing on three fronts. “The odds of a recession in the next 18 months are greater than 50%,” Kelly added.
He says the economy could slip into a technical recession — defined as two consecutive quarters of negative growth — as soon as the end of the second quarter of 2022. Analysts will be closely watching the Bureau of Economic Analysis on July 28 for early estimates on that.
Apart from this, speculation of the fallout from surging gas prices following Russia’s unprovoked invasion of its neighboring Ukraine, besides the Fed’s continued interest hike seems to put a huge weight on the economy by the year-end or early in 2023.
American rapper Snoop Dogg announces new breakfast cereal Snoop Loopz; With 'MORE Marshmallows'
Clearing away all the clouds of possibilities about the US slipping into a recession the Investment firm Muzinich has taken this into seeing that question at present is not around a forthcoming recession but rather when is it going to hit.
Another comment was served by the veteran investor David Roche. He is of the view that the global economic outlook has taken a shift and now it has become far easier to assess how various economies are likely to deal with pressure.
Roche said he considered a recession the loss of 2-3% of jobs in a given economy, suggesting that a U.S recession may be some way off. One of the data published earlier by the Bureau of Labor Statistics showed stronger-than-expected jobs growth, with nonfarm payrolls increasing by 372,000 in the month of June, well ahead of the 250,000 expected.
Not only the US rather the major European blocs are also feeling the burn of an economic slowdown but however, are not into much trouble as the US over slipping into the canyon of recession.