Economist predicts US recession

VEB Chief Economist Klepach: Recession in the US may occur at the end of 2023

Andrey Klepach, chief economist at VEB, told RIA Novosti in an interview during St.Petersburg International Economic Forum that a recession could happen in the late 2023 or early 2024 and it would not affect large banks but it would affect medium-size credit institutions and insurers.

“If we talk about the risks in general, the probability of a recession in the US economy is big, but it is more likely to be in late 2023 or early 2024. I don’t think large banks will be affected, but medium-sized banks and insurance businesses will suffer losses,” the agency’s interlocutor said.

There are several trouble spots in the global economy at the moment: in the US and Europe there are growing fears of a banking crisis following the collapse of a number of major banks, the most notable of which was Credit Suisse of Switzerland. At the same time, depositors continue to withdraw money from credit institutions and loan servicing problems are on the rise.

In addition, a number of developed economies are slowing down or have gone into recession, as happened in the first quarter of this year in the euro area, including Europe’s largest economy, Germany.

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