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30 May 2024
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BRICS: Economist Says US is ‘Sleepwalking’ Into Recession

The global economic perspective has undergone a massive shift over the last year. Indeed, the US dollar has been losing ground as countries across the globe seek greater diversification in their economic standing. Subsequently, amid BRICS leading the de-dollarization charge, one economist has said the US is “sleepwalking” into recession.

Specifically, top economist David Rosenberg spoke to Business Insider on critical areas of an economic downturn beginning to show themselves. Rosenberg noted the data indicates “the downturn in the economy may not be as far away as many believe.”

us stock market dow jones nasdaq
Source: economictines.com

Also Read: BRICS: Top Economist Says U.S. Dollar is ‘Getting Worse’

US Economist Warns of an Impending Recession

Throughout the last year, the BRICS bloc has consistently sought to orchestrate the creation of a multipolar world. The prevalence of the West and the weaponization of currency facilitated that idea to become immensely popular among emerging economies.

Now, as the BRICS alliance is seeking to embolden its de-dollarization plans, one US economist says a recession is nearing. Specifically, top economist David Rosenberg, president of The Rosenberg Research Project discussed what is a harrowing reality for the United States.

Rosenberg identified data that would indicate a near-term economic downturn. To start, he pointed out the job market. Over the past year, it has continually lost strength, with unemployment maintaining a position at a two-year high in April.

Yuan and dollar bills
Image Source: Unsplash

Also Read: BRICS to Announce New Currency At October Summit?

Additionally, Rosenberg noted that economic activity as a whole was slowing down. GDP numbers were softer than expected in the first quarter, all the while recession models have signaled a downturn nearing.

“Don’t get complacent. The labor market is cracking, a slowdown in service activity is dragging on real-time growth,” Rosenberg said. “Forward-looking financial signals still point to a coming slowdown.” Ultimately, the economist said that the country is “sleepwalking” into a recessionary state.

Those developments are only compounded by geopolitical factors. Not just BRICS activity, but conflicts have led to increased unrest on a global scale. Additionally, gold and digital currencies have created alternative avenues for the US dollar to lose influence and power. Moreover, those alternatives do not appear to be losing their luster anytime soon.

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