U.S. Bank Failures Threaten to Affect Global Growth

Turmoil in the U.S. banking sector isn’t just a problem for the U.S. It also increases the risks of a global recession.

Many economists expected a significant downturn in global economic growth this year even before U.S. lender Silicon Valley Bank collapsed, because of an expected pullback in spending and investment in the U.S. and Europe amid climbing interest rates.

Those concerns eased somewhat early in the year, with data showing surprising economic vitality in Western economies, and the beginnings of a revival in China after Beijing in December ditched its zero-tolerance approach to Covid-19.

Source : U.S. Bank Failures Threaten to Affect Global Growth