USA (bbabo.net), - The US economy will enter a moderate recession in 2023. This is the forecast made by S&P Global Ratings economist Beth Ann Bovino. The expert compares such a recession with the situation of 1969-1970, when the economic downturn was also caused by a sharp acceleration in inflation.

Then the recession began in December 1969 and lasted 11 months, according to the National Bureau of Economic Research (NBER), which records the onset and duration of a recession in the United States.

S&P Global Ratings predicts the US economy will shrink by about 0.8%. Recall that inflation in the US has exceeded 8% for several months. According to MarketWatch, the optimal, from the point of view of the Fed, is 2%. As previously reported, in order to slow inflation, the US central bank is aggressively raising interest rates, putting pressure on the economy and raising the risks of a recession.

At the same time, S&P Global Ratings experts clarify that in 2022 the negative effect was not so pronounced due to the momentum from the economic recovery after the recession caused by the coronavirus, but next year this momentum will come to naught.

“Given the ongoing geopolitical risks, a recession in the US economy seems almost inevitable,” the report says.

The forecasts of Deutsche Bank analysts are also disappointing: they warn of a collapse in stock markets by about 25% next year.

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