Will the recent banking chaos lead to an economic crash?

Recent global banking chaos may lead to a recession, but the impact may be less significant than feared. Analysts worry about the uncertainty and credit problems that may arise.

March 29, 2023 . 3:29 AM

1 min read

Analysts worry recent banking chaos will lead to recession caused by fallout from the collapse of Silicon Valley Bank and the rescue of Credit Suisse.
Evidence from before the recent banking chaos suggested that global GDP was increasing at an annualised rate of around 3%.
Fortunately, there is reason to believe that the recent banking turmoil will have less impact than many fear.
Global banks’ share prices have tumbled by a sixth since the start of March.
Although the recent banking turmoil is hardly good news, it is unlikely to push the world economy over the edge.