Morgan Stanley Lowers 2025 US Growth Forecast Due to Tariff Impact

Reported 2 days ago

Morgan Stanley has revised its US economic growth forecast for 2025 down to 1.5% from 1.9%, attributing the change to increased tariff impacts and a tight labor market causing higher inflation. The firm noted that earlier tariffs are expected to affect growth sooner than previously anticipated, and also lowered its 2026 forecast slightly. Additionally, Goldman Sachs has adjusted its own growth projection and raised its recession probability for the coming year.

Source: YAHOO

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