Economist says US is ‘sleepwalking’ into recession

The global economic perspective has undergone a huge shift in the past year. The US dollar has lost ground as countries around the world seek greater diversification in their economic positions. Then one economist said, with the BRICS leading the way in de-dollarization, the US is “sleepwalking” into recession.

In particular, top economist David Rosenberg spoke to Business Insider about critical aspects of an economic downturn that is beginning to materialize. Rosenberg noted that the data indicates that “the downturn in the economy may not be as far away as many think.”

Also read: BRICS: Top economist says the US dollar is ‘getting worse’

American economist warns of an impending recession

Over the past year, the BRICS bloc has consistently sought to orchestrate the creation of a multipolar world. The dominance of the West and the weaponization of the currency made this idea immensely popular among emerging economies.

As the BRICS alliance looks to boost its de-dollarization plans, a US economist says a recession is approaching. In particular, top economist David Rosenberg, chairman of The Rosenberg Research Project, discussed what is a dire reality for the United States.

Rosenberg identified data that would point to a near-term economic downturn. To start with, he pointed to the labor market. The economy has continued to lose momentum over the past year, with unemployment remaining at its highest level in two years in April.

Also read: BRICS to announce new currency at October summit?

In addition, Rosenberg noted that economic activity as a whole was slowing. GDP figures were softer than expected in the first quarter, while recession models have indicated a downturn is approaching.

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

These developments are only exacerbated by geopolitical factors. Not only BRICS activities, but also conflicts have led to more unrest on a global scale. Furthermore, gold and digital currencies have created alternative opportunities for the US dollar to lose influence and power. Moreover, these alternatives do not seem to be losing their luster anytime soon.