Goldman Sachs Issues Recession Warning

US-based investment bank Goldman Sachs announced that the risk of recession is higher than ever.

Goldman Sachs Issues Recession Warning. Goldman Sachs revised down the US growth data and pointed out that the risk of recession has increased. In the written statement made by the bank, it was stated that the probability of entering a recession in 2023 is 30 percent. Bank economists, who stated in their previous statements that this rate was 15 percent, doubled their estimates. The leading names of the bank emphasized that if the recession can be prevented in the first year, the probability of recession in the second year is 25 percent. The rate calculated for two years was recorded as 48 percent. Commenting on the issue, Goldman Sachs Economist Jan Hatzius said that the recession risk in the USA is now higher and front-loaded. Third Quarter Growth Expectations Lowered The bank also announced that it lowered its growth forecast for the third quarter to 1.75 percent. The second quarter growth expectation was kept constant at 2.8 percent. Can Recession Be Prevented? On the other hand, while Wall Street analysts argued that a recession could be prevented, US Treasury Secretary Janet Yellen and US President Joe Biden announced that a recession was inevitable. Yellen stated that consumer spending on economic activity remains strong and that a recession in the country is not inevitable.