US 2023 GDP forecast lowered to 1.2% by S&P Global Market Intelligence

13 May '23

1 min read

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After cautioning about risks from the US debt limit default and banks tightening credit standards, S&P Global Market Intelligence recently lowered its forecast for US real GDP growth by 20 basis points to 1.2 per cent for 2023 and by 90 basis points to 0.9 per cent for 2024.
The GDP could also be hit by tightening in credit standards than in the last month.

After cautioning about risks from the United States’ debt limit default and banks tightening credit standards, S&P Global Market Intelligence recently lowered its forecast for US real economic growth for this year and next year.

The US real gross domestic product (GDP) growth forecast for 2023 was cut by 20 basis points to 1.2 per cent by Joel Prakken, co-head of US economics at S&P Global Market Intelligence cut his.

The risk the United States may fail to meet all its financial obligations by early June has prompted Prakken to factor in a slight mid-year dip in stock prices that contributes to slower growth over the rest of this year and into 2024, he said.

The organisation also cut its 2024 GDP growth forecast by 90 basis points to 0.9 per cent.

The GDP could also be affected by tightening in credit standards than in the last month due to a potential deterioration in the quality commercial real estate loans, leading to lower investment in non-residential structures, the organisation noted.

ALCHEMPro News Desk (DS)

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