Morgan Stanley has lowered its forecast for U.S. GDP growth in 2025 to just 0.8%, compared to its previous estimate of 1.5%, amid increasing signs of a slowdown in economic activity in the United States due to the trade war between the U.S. and its trading partners.
In its latest report, the bank stated that U.S. growth expectations remain positive, but they indicate a notable weakening in economic momentum. Morgan Stanley emphasized: "While we do not expect an economic recession at this time, the gap between the slow growth scenario and contraction has narrowed compared to before."
This cautious revision by Morgan Stanley reflects a more guarded outlook towards the future of the U.S. economy, amidst the ongoing impact of tight monetary policies and increasing geopolitical challenges and inflationary pressures, which may keep markets on edge in the coming months.
