Washington - Saba:
Goldman Sachs has raised the probability of a US recession, warning that the new sweeping tariffs imposed by President Donald Trump are tightening financial conditions and impacting investment.
The US investment bank increased the probability of a US economic slowdown over the next 12 months to 45%, up from 35% the previous week.
It also lowered its 2025 US economic growth forecast from 1% to 0.5%, and predicted a decline in capital spending following a sharp tightening in financial conditions and increased political uncertainty.
Before Goldman Sachs, banks and experts had warned of the risk of a US recession due to the new tariffs.
Global stock markets, including oil and gold markets, are collapsing today amid fears of a global economic recession.