Michael Feroli, chief economist at US bank JP Morgan Chase & Co., points out that the United States may no longer see a recession in 2023. The reason is a strong third quarter that shows healthy economic growth.
In the news: Feroli expects that there will be no economic recession in the United States.
- The bank's North American Economic Research department expects the US economy to grow by 2.5 percent of GDP in the third quarter of 2023. Previously, they were aiming for an increase of just 0.5 percent.
- “We suspect that the economy will quickly lose so much momentum that it will experience a contraction in the next quarter, as we previously expected,” Ferroli said in a new note titled “The United States: The End Is As a result of this growth.” “Not even close.”
- The risk of the United States hitting its debt ceiling, exacerbated by the banking crises earlier this year, has largely disappeared, the chief economist at the largest US bank says. “At the same time, the opportunity for healthy, non-inflationary growth has increased,” the report also said.
But at the same time: This does not mean that the American economy will enter the future without any problems.
- According to Feroli, there is still a risk of a setback, especially if the Federal Reserve, the US central bank, announces new increases in interest rates.
- Even if that doesn't happen, the economist expects economic growth to slow somewhat next year: his team expects growth of 0.5% in the first two quarters, and 1% in the next two quarters.
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