*A United States economic forecast warns of recession, as stocks tumble and tariffs are poised to jack up prices, fuelling fears of a major downturn in the American country

Gbenga Kayode | 绿帽献妻

A United States (US) economic forecast is warning of recession, as stocks tumble and tariffs are poised to jack up prices, fuelling fears of a major downturn in the American country, agency report said.

The US Gross Domestic Product (GDP) growth is expected to be -2.4 percent for the First Quarter (Q1) 2025 after forecasts, which are published every few days, fell into the negative starting February 28, 2025, according to the Federal Reserve Bank of Atlanta, in the United States.

绿帽献妻 reports GDP is a key metric on the pace of the economy’s health and two consecutive quarters of negative GDP growth would signal a recession.

Source: Federal Reserve Bank of Atlanta

Report also noted that the worrying numbers follow economic uncertainty from Trump’s tariffs, which are expected to raise prices on numerous goods and services, including cars and home construction.

Price hikes from tariffs could reduce spending, lower production and cause job cuts.

The stock market has also reacted negatively in recent days.

The S&P 500 fell another 1.8 percent and brought its multiday decline to 7 percent.

And the tech-heavy Nasdaq 100 index fell into a correction, bringing it down more than 10 percent from recent highs.

Before Trump’s tariffs, there were already fears of a US stock market bubble.

Some 89 percent of investors said they think stocks are overvalued, according to a February survey by Bank of America.

Bank of America likened the current market scenario, which involves a high concentration in few stocks, to the dot-com crash of the late 1990s.

World Economic Magazine report noted: “If history is any indicator, the current market scenario could lead to a significant downturn, potentially dragging the S&P 500 down by as much as 40 percent.”

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