Saturday, 23 September 2023 04:53 GMT

Slump in US and EU ‘more likely than not’ in 2023

(MENAFN) The US is going to “more likely than not” fall into recession in the next year, according to Reuters on Thursday, mentioning Andrew Balls, CIO of US-based investment management company PIMCO.

“A recession is not the only important thing. You’re clearly going to see a significant growth slowdown,” Balls announced at a press session, saying that the US Federal Reserve, along with many other central banks, is focused on fighting inflation and not on financial expansion.

“The inflation profile in the short term is very important. Central banks are focused on inflation credibility,” he added.

Balls said that he studies recession possibility in the US in the next year at almost 50 percent. Europe should also anticipate a slump, but the possibility of this scenario there is even higher than in the US, Balls informed.

“In the European case I think they will hike [interest rates] as they’ve laid out this year and get to positive rates, but it’s really not clear that they get as far as the market is pricing in,” he went on.


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