The Epoch Times reports that the “vast majority of economists at 23 large financial institutions” predict America will enter into a recession in 2023.”
The analysis flows from a Wall Street Journal survey and predicts that “millions of Americans [will] lose their jobs.”
According to the report, “more than two-thirds” of the 23 financial institutions surveyed “expect the U.S. economy to contract in 2023.”
The report notes that 2 of the 23 financial institutions surveyed expect America to enter into a recession by 2024; 5 believe America’s economy will rebound — Credit Suisse, Goldman Sachs, HSBC, JPMorgan Chase and Morgan Stanley.
Economic woes have been spurred on by soaring U.S. inflation, which marked a 40-year high of 9+ percent in June and led to the “Fed raising rates at its fastest pace since the 1980s in a desperate bid to relieve price pressures,” according to the Epoch Times.
The aggressive measures by the fed have reduced inflation by less than 2 percent, with many expecting higher inflation rates in the first quarter of the new year.
The fed has pledged to keep raising rates until inflation recedes. However, the negative effect that can have on the American consumer is worrisome to many.
Fed officials note they expect inflation to rise approximately one percentage point before easing in 2024. Most of the economists surveyed believe unemployment levels will increase and peak at over 5 percent — meaning several million Americans will be out of work.
A review of 2023 market outlook reports from 10 major investment banks by SMB Law Group notes that most are pessimistic about the economy; Barclays is predicting that 2023 “will be a long, hard slog.”
Goldman Sachs anticipates that America will “narrowly avoid recession.”
In its October, biannual global economic report, the International Monetary Fund (IMF) announced it expected inflation to peak in late 2022 but warned that inflation levels would “remain elevated for longer than previously expected.”
Contradicting many local experts, the IMF reported it expects U.S. inflation to drop from 8.1 percent in 2022 to 3.5 percent in 2023. The agency also reported it expects inflation levels in Europe to continue to climb, noting that emerging European economies could see inflation rates of 19.4 percent.
The IMF report noted: “More than a third of the global economy will contract this year or next, while the three largest economies—the United States, the European Union, and China—will continue to stall.”
“In short,” the report added, “the worst is yet to come, and for many people, 2023 will feel like a recession.”
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