US economy may be heading towards a downturn, as post-pandemic growth proves to be an outlier, according to a recent report by SBI Research. The report warned of declining GDP growth, weakening private consumption, and slowing exports, raising concerns about a potential recession.
SBI Research suggested that the sharp economic rebound following COVID-19 was largely driven by an unprecedented policy response rather than sustainable growth. The long-term trend, however, points to a deceleration in GDP expansion. The US economy grew by 3.2 per cent in Q4 2023, but this slowed to 2.5 per cent in Q4 2024. The Atlanta Federal Reserve’s GDPNow model estimated a contraction of 2.4 per cent for Q1 2025, marking a significant reversal from earlier growth projections.
Private consumption, a key driver of the US economy, has been declining since 2000. The report highlights that while inflation…
