Many analysts expect the economy to witness recessionary pressures due to the lingering macroeconomic and geopolitical headwinds. The U.S. GDP declined at a 1.4% annualized pace in the first quarter, below analysts’ expectation of a 1% gain. State Street Global Advisors’ Chief Economist Simona Mocuta said, “It reminds us of the reality that growth has been great, but things are changing, and they won’t be that great going forward.”
Inflation has surged to its highest level in four decades, and the March jobs data suggested a tight labor market. Moreover, peace talks between Russia and Ukraine have shown no progress. As a result, supply disruptions continue to worsen, and energy and commodity prices remain at uncomfortably high levels.
