Daily Management Review

S&P expects "mild" recession in the U.S. economy in 2023


According to a report released by the rating company S&P Global Ratings, the U.S. economy runs the risk of entering a "mild" recession in 2023 and declining by 0.1 percent.

Reading Tom via flickr
Reading Tom via flickr
"We continue to forecast a recession in the U.S. in 2023... GDP growth will deteriorate to -0.1 percent," notes the agency.

According to the organization, the US economy will experience a "moderate" recession similar to that of the 1960s and 1970s.

The ongoing conflict between Russia and Ukraine, the rising tensions surrounding Taiwan, and China's downturn, which is putting more pressure on supply chains and prices, are all contributing to the U.S. economy's impending recession, believes the S&P.

The agency also points out that decreasing spending by consumers and businesses in order to cut expenses in reaction to weaker demand is a result of rising consumer prices, which are anticipated to do so throughout the most of next year.

source: spglobal.com