- Morgan Stanley lowers 2025 GDP growth expectations from 1.5% to 0.8%.
- J.P. Morgan adjusts forecast down to 1.6% from 1.9%.
- Heightened risk of global recession due to trade policy disruptions.
Recent revisions to U.S. GDP forecasts by Morgan Stanley and J.P. Morgan highlight significant economic shifts and potential impacts on global markets.
With ongoing trade policy uncertainties and increased global recession risks, economic conditions seem poised for volatility. The crypto market, already sensitive to regulatory and economic changes, remains on high alert.
U.S. GDP Forecasts Revised by Major Banks
Morgan Stanley and J.P. Morgan recently announced changes to their projections for the U.S. GDP growth in 2025, revealing a significant shift in expectations. This revision highlights growing concerns about economic conditions arising from policy uncertainties.
Morgan Stanley lowered its 2025 U.S. GDP growth expectation to 0.8% from a previous 1.5%, while J.P. Morgan adjusted its forecast to 1.6%, down from 1.9%. Key reasons for the revised projections include ongoing trade policy uncertainty and significant tariff impacts, as cited by J.P. Morgan.
Market analysts and economists reacted to these changes with caution. Bruce Kasman of J.P. Morgan noted heightened global recession probabilities, while Morgan Stanley acknowledged potential implications for consumer-driven sectors.
Surveillance of Crypto Markets Amid Economic Uncertainty
Did you know? Morgan Stanley’s current economic outlook mirrors past trends where global conflicts and trade uncertainties led to revised GDP forecasts, affecting market confidence.
According to CoinMarketCap, Bitcoin (BTC) has shown a 3.37% increase over the past 24 hours, reaching $78,858.05. The 24-hour trading volume stood at approximately 6.02% change, equating to $69.92 billion. With a market cap of $1.57 trillion, Bitcoin maintains a market dominance of 62.57%.
Coincu’s research team highlights potential regulatory impacts due to these GDP adjustments. As historical trends demonstrate, significant policy shifts in major economies can disrupt global crypto markets. Market players are urged to closely monitor trends and prepare for possible economic volatility.