JPMorgan says US economy is ‘dangerously close to recession’

Economists at JPMorgan Chase & Co. worsened the forecast for the US economy. This is primarily due to the weakening consumer demand. In the second half of the year JPMorgan now expects GDP growth at the level of 1% in annual terms against 2.5% in the previous forecast.

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“Our forecasts are dangerously close to a recession. But we still expect the economy to pick up, partly on expectations that jobs will be retained even as food demand declines,” said Michael Feroli, chief US economist at JPMorgan.

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GDP growth could accelerate to 1.5% yoy in the final quarter as inflation could slow and car production could pick up.

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The International Monetary Fund predicts that the US GDP growth rate will decrease from 2.9% in 2022 to 1.7% in 2023 and 0.8% in 2024. The organization believes that the US is narrowing its options to avoid a recession.