JP Morgan Bank experts have warned that the US economy is on the verge of a dangerous recession and lowered their GDP growth forecasts for the US economy.
According to Bloomberg reports, Michael Feruli, the bank’s chief US economist, said:
“Our forecast is perilously close to a recession, but we continue to expect the economy to grow in part on expectations of job retention even as food demand declines.”
Feroli pointed out that weak consumer demand could lead to a slowdown in US economic growth in the second quarter to 1% year-on-year from a previous estimate of 2.5%.
The bank expects US gross domestic product growth to pick up by the end of the year, reaching 1.5% in the last quarter, which could help slow inflation as well as increase car production.
Earlier Friday, the Federal Reserve Bank of Atlanta said its research projects a 1% decline in US gross domestic product in the second quarter of 2022.
If official forecasts are confirmed, this will mean the beginning of a recession in the US economy, which usually leads to a decline in GDP within six months.
In the first quarter of the year, US production fell 1.6 percent.
Source: RIA Novosti