Moody's does not see a recession on the back of cooling inflation and sound economic fundamentals.
(European News Agency)
[Financial Channel/Comprehensive Report] The world is shrouded in suspicion of economic recession. Many executives, investors and consumers are worried that there will be a recession this year. However, investment analysis company Moody's believes that the more likely scenario is "economic slowdown" , rather than recession.
"CNN" reported that Moody's chief economist Mark Zandi said in a report on Tuesday (3rd): "In any case, the economy will be in trouble in 2023. But inflation is slowing rapidly, and economic fundamentals Good. With luck and smart policy from the Federal Reserve, the economy should be able to avoid an outright downturn."
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In addition to cooling inflation, Moody's is also optimistic about consumers' spending power this year.
“The consumer is the firewall between recession and recession,” Zandi said. While the firewall will come under a lot of pressure, it’s not going away, it’s here to stay.
Zandi also pointed out another key point, that is, there have not been major market imbalances in the past, such as the excessive construction of the real estate market or the huge asset bubble. Therefore, it is important not to be blindly optimistic, but it is also important not to keep telling yourself that there will be a recession .
Moody's isn't the only company with an upbeat outlook on the economy, with Goldman Sachs believing the U.S. economy can avoid a recession thanks to a strong U.S. job market, cooling inflation, rising real wages, plunging natural gas prices and a likely pause in Fed rate hikes.
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