Rising Interest Rates Threaten the Global Financial System
By U In Hurricane [EN]
U.S. banks’ lending capacity will decline by 1% this year due to the fall in the value of many bank stocks as investors reassess the health of midsize banks, International Monetary Fund (IMF) says. That reduction in lending is expected to shave 0.44 percentage point off America’s gross domestic product in 2023
A severe flare-up of financial system turmoil could slash output to near recessionary levels after the failures of two U.S. regional banks and the forced merger of Credit Suisse. The collapses prompted fears among some depositors about the health of small and midsize banks
The American economy would expand 1.6% this year, down from 2.1% in 2022, while the global economy would grow 2.8% this year, a slowdown from 3.4% last year, as nations continue recovering from slumps caused by the pandemic and the war in Ukraine, the IMF estimates.
Original source: https://t.me/uinhurricane/3706