Bad omens of a looming recession in the US pop up day after day. Having absorbed recent macroeconomic data, analysts at Deutsche Bank conclude that a full-blown recession is on the horizon. Experts say that the world’s top economy has provided alarming clear-cut evidence of a downturn.
Jim Reid, head of research and global fundamental credit strategy at Deutsche Bank, has conducted in-depth research analyzing macroeconomic data since the 1700s. He pinpointed the triggers of a pending recession. From his viewpoint, the US economy has already signaled the final dreadful warning that fits into those criteria. Moreover, an economic slowdown will spread across the global economy. Interestingly, the research by Jim Reid contains a mine of economic data collected for the last 323 years. The economist expanded on recessions, economic booms, and downturns in a few leading economies such as the US, Great Britain, Canada, France, Germany, Italy, and Japan. The research rests on official reports, papers of economic scholars, and his own estimates.
The expert reached a remarkable conclusion that all 34 recessions that the US has survived from 1854 have eventually benefitted the domestic economy. Jim Reid affirms that ailing companies or industries boosted by a bubble always fall prey to an economic upheaval whereas the best companies stay afloat. The remaining economic resources are efficiently shared among gainers. Nowadays, a top priority of the US authorities is to avert a recession at any cost. “Such supportive economic policies became especially important in the wake of the global financial crisis, as policymakers sought to avoid the inaction seen during the crisis and made unprecedented interventions to prevent a much worse downturn,” Jim Reid thinks.