Goldman Sachs raised the probability of the US economy entering a recession within the next 12 months from 25% to 35%.
Goldman Sachs’ decision comes amid increasing uncertainty about the economic impacts of pressure from banks.
Yesterday, the bank lowered its forecast for US GDP growth in the fourth quarter of 2023, citing risks surrounding lending, while smaller banks shrink their loan portfolio to preserve liquidity in the face of the banking crisis.
Silicon Valley Bank “SVB”, which is a favorite destination for American technology startups, recently made headlines after its collapse, leaving its customers and investors in a difficult situation.
The Silicon Valley bank, which faced an unusual deposit drawdown and a capital crisis, collapsed on Friday morning and was taken over by federal regulators.
The collapse of the bank was described as the largest failure of an American bank since the collapse of Washington Mutual, which was considered the largest American company operating in the field of savings and lending, in September 2008.
