ABN predicts recession in 2008

ABN AMRO believes there is a 75% chance that the US economy will fall into recession before t...

ABN AMRO believes there is a 75% chance that the US economy will fall into recession before the end of 2008. According to Han de Jong, chief economist at the bank, the overriding aspect overshadowing developments in the world economy in 2008 is that the US is likely to slump into a recession. “For now, we are calling for a relatively mild US recession, provided that monetary policy is eased significantly,” he said. De Jong believes that a self-reinforcing vicious spiral between the real economy and the financial markets is developing. He pointed out the reduced availability o...