US economy records hits slowest pace since the US President assumed office

The U.S. economy seems to the growing at the slowest pace since the US President took office, which has raised fears from different quarters. However, economists have clearly stated that the economy is not in any way heading for a recession as feared by some.

The recent GDP report from China that showed the slowest annual growth rate in nearly three decades has raised the fears of a possible recession, with the likes of Ray Dalio, the founder of Bridgewater warning of a recession.

The U.S. economy, meanwhile, seems to have slowed, though economists do not have as much data as usual because of the government shutdown. Housing data for December revealed a significant reduction in home sales to a three-year low while consumer sentiment fell to 90.7, its lowest level since October 2016.

“It just shows how fragile things are. If we don’t have recession this year, the odds are high that we’ll have one in the next few years,” said Mark Zandi, chief economist at Moody’s Analytics. “I think we’ll navigate through. As the economy weakens, political pressures will intensify and the policy makers will respond sufficiently to keep the train on the tracks.”

Ray Dalio said at Davos that he expects a recession in 2020. He also expressed his concern about “greater political and social antagonism” around the globe. Dalio’s fears might be substantiated with the fact that the IMF this week said it cut its global growth forecast for 2019 to 3.5 percent from 3.7 percent, withe the trade war between the U.S. and China being a major factor.

“It’s a confluence of things. One is the end of the stimulus in the U.S. That takes a lot of steam out. That affects the entire global economy,” said Mark Zandi, chief economist of Moody’s Analytics. “Part of it is the trade war. That’s doing damage all over the world including the U.S. and that’s accumulating over time. Then you have the government shutdown, which is very corrosive on the economy and it’s starting to take the steam out.”

More economic news and other related information about Singapore and the economic situation in Asia, as well as the services offered by Phillip Private Equity, can be found on their website.

About Phillip Private Equity

Phillip Private Equity is one of the leading private equity firms in Singapore. Formerly known as ECICS Management Pte Ltd, the company offers a wide range of financial services with a focus on providing capital in the form of equity and debt to innovative enterprises across select stages, sectors, and geographies.

The company aims to create businesses with lasting and significant value by closely working with investee companies to accelerate their growth and help them achieve their potential. Phillip Private Equity has a team of fund managers with more than 20 years of experience managing proprietary, in-house and 3rd party funds. The investment objective is to deliver investment returns while safeguarding stakeholders’ interest by protecting against downside risks.

Media Contact
Company Name: Phillips Equity Advisors
Contact Person: Media Relations
Email: Send Email
Phone: +1 212-485-3392
Address:387 Park Avenue South
City: New York
State: New York, 10016
Country: United States