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On the verge of recession: US economy expected to slow by 2020, analysts say

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On the verge of recession: US economy expected to slow by 2020, analysts say

economy

12:51 04.01.2020 (updated 13:03 04.01.2020) Short URL

More than half of the senior investment bankers polled by Duke University have bet the US economy is likely to slow down by 2020.

Search from Duke University (USA) on the global business environment in 2020 points out that most global investment bank leaders are pessimistic about the growth of the US economy.

"US chief financial officers are preparing their expenses for the recession. They are cutting spending, accumulating cash, reinforcing the financial situation and taking other steps to prepare for the downturn," said research coordinator John Grem.

In 2019 the first signs of a slowdown were revealed as a result of the Washington-initiated trade war with China. According to International Finance Center expert Vladimir Rozhankovsky, US agriculture and business were the most harmed out of the clash:

"A wide range of flagship US companies are suffering losses from the fiscal war. They are, for example, FedEx, Cisco, Caterpillar, or General Motors. In addition, US farmers are always between the cross and the sword, "he said.

China has drastically reduced its purchase of US soybeans, preferring South American suppliers such as Brazil and Argentina.

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                    AP Photo / Nati Harnik

Farmer in Nebraska States Soybean Planting May 2019 after White House Releases Second Round of Subsidies

Saxo Bank Chief Economist Stin Jacobsen in interview RT said that the US economy should not only slow down, but go into recession:

"A US recession is very likely. In the fourth quarter of 2019, US GDP growth was between 0.2 and 0.3%, and could even be negative. By early 2020 the country is expected to be very close to that. A clear sign of the beginning of an economic downturn was the situation with interest rate fluctuation, which predicts recession with a probability of seven out of eight, "noted Jacobsen.

Analysts do not rule out a possible US recession affecting the presidential elections of 2020.

According to Saxo Bank forecasts, Donald Trump and the Republican Party risk handing over the Senate to Democrats, who already control the lower house of Congress.

. (tagsToTranslate) US Economy (t) US Economic Downturn (t) 2020 Forecast

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