⚈ He notes that the uncertainty of commercial policy eroded confidence and risks slowing down
⚈ The chances of recession for 2025 has increased to 72%, echoing the warnings of other experts
Mark Zandi, chief economist at Moody's Analytics, warned of the short -term perspectives of the American economy, urging businesses and investors to “relax” for a challenge in 2025.
Zandi stressed that the growing risks of tariff climbing, approval of the trade war and the growing probability of a global recession, he said in a interview With David Lin published on May 2.
The economist painted a dark image, declaring that the chances of a global recession starting this year now exceeds 50%.
“At best, the growth prospects of the economy have been reduced by prices and the trade war. <…> We are by the edge, the more it happens, the more damage it will do, “he said.
He stressed that the uncertainty caused by current trade policies eroded confidence and feeling, potentially pushing the economy into a slowdown.
Zandi also noted that the future trajectory of the economy depended on commercial policy decisions. However, he expressed his optimism, warning that prolonged uncertainty could become “too difficult to bear” for the economy.
“If the administration can take a ramp out of ramp, reduce prices and defuse the trade war, we have a fight to avoid a slowdown,” said Zandi.
Consequently, he predicted a “six to 12 months difficult to come”, whether it was a full -fledged recession.
Impact sectors in a recession
From its perspectives, the combination of economic uncertainty and weakened growth prospects should weigh heavily on the real estate markets, which are already faced with challenges of demand and financing.
In particular, Zandi joins an increasing number of experts on the market projecting a possible economic slowdown trained by trade tensions.
As Finbold reported, JPMorgan CEO Jamie Dimon warned that the increase in American-Chinese trade tensions and the persistent prices of the Trump era could reduce the revenues of the S&P 500 and lead to a probable recession.
At the same time, economist Steve Hanke estimated a 90% chance of a recession of 2025, while the founder of Bridgewater, Ray Dalio, issued an even rarer warning, suggesting that the United States could face deeper systemic challenges if the monetary system is not carefully managed.
Meanwhile, with the economic growth of the United States slowing in the first quarter, the chances of a 2025 recession increased in the betting markets, increasing up to 72%.
Look at the full interview below
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