11:36 GMT +330 September 2016
Live
    US and European flags float in front of the European Commission headquarters in Brussels 22 February 2005

    US Economy to Become 'More Vulnerable' in 2016

    © AFP 2016/
    US
    Get short URL
    235248390

    The possibility of the US economy slowing down over the course of next few years has surged by 75%, according to JPMorgan analysts.

    Strategists predict that the US will likely slide into recession in the upcoming two or three years, in a note titled, "Is it safe?"

    Under the prospects, in 2016 Washington will have to deal with "pockets of stress," as the country’s economic expansion has become “more vulnerable."

    “US expansions don’t die of old age, but an environment of tight labor markets amid weak productivity gains and limited global pricing power signals that the expansion is becoming more vulnerable,” Business Insider reported, citing the strategists’ note.

    Central banks in countries around the world will adopt different strategies in 2016 that will ultimately result in global economic volatility, they suggest. Analysts explained that the growth gap between developed and emerging markets will likely diminish, leading to some benefits for developed economies and losses for emerging markets.

    The global economy is expected to grow by 2.6 percent in 2016.

    “We believe the most likely 2016 outcome is one where the global expansion moves forward in the face of pockets of stress.

    China will be the primary driver for the world’s economy, as its growth is expected to stabilize amid a slowdown in other emerging markets.

    “While our forecast incorporates four US rate hikes next year, the risk that global financial market volatility slows the Fed’s path is high.”

    Related:
    Saudi Arabia Hits Record $98B Deficit, Riyadh Doubles Gas Prices
    Commodity Drag to Spur Selloffs in Foreign-Held US Assets
    After 7 Years of Obama Administration, US Economy Still Underperforming
    Tags:
    market review, interest rate, US economy, global economy, China, United States
    Community standardsDiscussion
    Comment via FacebookComment via Sputnik
    • Сomment

    All comments

    • Mitach2002
      Vulnerable. Heck I hope it crumbles in spectacular fashion.
    • linebackerk
      US doesn't have much of economy to speak of. The military industrial complex and money printing are basically US economy.
    • Mark Gewiss
      This story's headline would've also worked on any New Year's day over the last 40 years...
    • daltonfury33
      Meanwhile russia's economy will completely crumble
    • tony pin reply todaltonfury33(Show commentHide comment)
      daltonfury33, That was said over a year ago, meanwhile its gold reserves continue to rise.
    • W.T,F. are these IDIOT financial ANALists thinking of??? In case they haven't noticed, the septics (US) are already in a recession, next year they will be in a DEPRESSION!!! Heading to a twenty TRILLION $ national dept does not add up to just a little recession to me!!! I actually believe even this amount to be moderately underrated!!! and yes tony p, they MIGHT have gold reserves but ALL STOLEN from there takeovers and regime changes. There collapse CANNOT come quick enough!!!
    • Maybe the USA should start implementing more sanctions around the globe :) Let's seethe big crumble happening in 2016.
    • teddy j
      this - regardless of the short-term-= medium term effects on economies that are attached to the USA , after all,

      IS STILL GOOD NEWS...

      A slowing down US economy is LESS able to

      imperialize -- and every little bit of diminishment of that ability COUNTS for much for the rest of the world -- that GIVES THE WORLD the BREATHING SPACE

      to DETACH ITSELF from american wars and american economy.

      and MOVE ON to prosper with less and less american economic influence.


      which is a CANCER on the world body.
    • teddy jin reply to (Show commentHide comment)
      vendor,

      in fact -- they probably DID see the numbers just this week -- as the new year has arrived.

      for TWO potential reasons :

      1) after announcing MORE sanctions on IRAN ...
      2) potential fear that LOSS of market due to sanctions will geometrically INCREASE the effect of the american economic slowdown just revealed....

      HAS MADE THE WHITE HOUSE TODAY -- suddenly, without explanation

      "postpone the sanctions on iran"...

      BUT ALSO potentially because IRAN didn't flinch at the announcement of new sanctions at all.

      INSTEAD -- IRAN ISSUED A STATEMENT "more sanctions and illegal meddling in the iranian economy and decision-making -- will ONLY MAKE IRAN INCREASE ITS MISSILE DELIVERY SYSTEM"........
    • in reply toteddy j(Show commentHide comment)
      teddy j, perhaps you are right. It is obvious to all that the US economy is fragile and suffering from a serious form of cancer.(Type IV)
    • professor.hornblow
      No mention of the liquidation of commodities.There's a few trillion dollars worth of hyped up balance sheets to add to the tumbling prices
    • the "emerging markets" i.e BRICS, Iran, Venezuela and the likes, played a long con on the EU and americans. the crash of 2008 was needed to deplete the last of the reserves. this time around, in the crash of 2016 their will literally be no money to bail out the bankster's and their friends. they will have to be broken up and the remainder liquidated, which in turn will level the playing field for the first time in 600 years or so.
    • this article can be summed up in one word, CRASH.
    • STOP killary !!
      America has reached its expiry date, just like Kim Kardashians sagging bottom !
    • Mother Gorilla
      What does the USA produce?
    • in reply toSTOP killary !!(Show commentHide comment)
      WW3 , YES, AND JUST LIKE THERE ECONOMY, DO NOT BE AROUND WHEN IT IMPLODES!!! )))
    • hjordan
      So says J P Morgan voice of the .01%. In other words, look Americans what we have planned for you!
      American Press, stand up and be counted as patriotic Americans, if you can:
      www.youtube.com/watch?v=RhkjYJAHCjM
      and thereafter measures bringing the New World Order:
      www.spingola.com/new_world_order1.htm
      What value will Press members have thereafter, I think nil.
    Show new comments (0)
    Top stories