An American report predicted that the US economy would enter a deep recession in the next few months, which began to appear clearly with the rise in the unemployment rate and the refusal of banks to give more loans.
Recession hits the US economy
The famous American research company “NDR” said that the US economy will enter a stage of deep recession in the next few months, and it considered that the increase in unemployment rates is a dangerous warning sign, according to the “Business Insider” website.
The American company said that there are many indications that indicate an approaching recession, including the rise in weekly unemployment claims to 265,000 last week, which represents a significant increase from recent levels and indicates that the economy is on a fragile basis.
And the company added that one of the most important indicators is also the decline in the yield curve, which is one of the indicators of recession that reflects the Federal Reserve’s control over the cost of funds in the short term, which means that the recession will occur in July of this year.
Among other indicators, the leading economic indicators are declining as the leading economic indicators also indicate that the recession should start now.
And the American company added that among the most important indicators indicating the imminent entry into an economic recession is that banks are tightening lending standards for consumer loans.
Default in the United States is a concern for the global economy
World Bank President David Malpass said earlier that default risks in the United States add to the problems facing a slowing global economy, with high interest rates and high debt levels already choking off the investments needed to fuel higher output.
The Group of Seven (G7) financial officials meeting in Japan have already discussed the “huge importance” of raising the US debt limit and avoiding the negative repercussions of a default on US government debt for the first time ever.