- 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.
The Economist — Economy — Banking Chaos — Finance — Recession — Investment
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.