The American economy is on the verge of a recession, JPMorgan Chase & Co. said. The largest US bank has revised its growth outlook for the country. “Our forecast comes perilously close to a recession. However, we continue to look for the economy to expand, in part because we think employers may be reluctant to shed workers, even in a period of soft product demand,” JPMorgan's chief US economist Michael Feroli noted. The Wall Street bank now sees annual US GDP growth declining to 1% in the second quarter from the previous 2.5%. By the end of 2022, the American economy is now anticipated to expand and tick up to 1.5% in the final quarter, supported by lower inflation and robust car production.
Meanwhile, the IMF is more optimistic about the country’s future, believing the US economy will slow down in 2023-2024 but avoid a recession. Real GDP growth is projected to drop to 1.7% in 2023 and to 0.8% in 2024 from 2.9% projected for this year. At the same time, experts at the IMF suggest that in 2025 and 2026, the figures will rise to 1.7% and 2.1% respectively.
