The asset management unit of HSBC Bank said that the United States will witness a slowdown in the fourth quarter, followed by a year of contraction and European recession in 2024.
In its review of forecasts for the second half of this year, the Bank of England’s asset management said recession warnings were “flashing red” for many economies, while fiscal and monetary policies were out of sync with stock and bond markets.
Joseph Little, chief global strategist at HSBC, said that although some parts of the economy remain resilient for now, the outlook for recession risks is high, with Europe lagging behind the United States, but the macroeconomic path is broadly aligned. general.
“We are already in a moderate recession in profits, and defaults in companies are starting to rise as well,” Little said in the report, which was seen by CNBC, adding: “The bright side is that we expect high inflation to recede quickly.” Relatively, and this will create an opportunity for policy makers to cut interest rates.
(agencies)
2023-06-28 19:28:31
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