The chances that they will now experience a 2025 recession increased because of the tariff he spent, said Alec Kersman, director and head of Asian-Pacific at Pimco, he said at CNBC at CNBC Converge live Event in Singapore on Wednesday.
There is “perhaps 35% likelihood” that this year he will get into a recession, Kersman told CNBC Martin Soong. This is more than about 15% of the chances that Pimco estimated in December 2024, because the consequences of US President Donald Trump’s tariff came into force.
Still, Kersman pointed out that the basic cases scenario is that the US economy will grow by 1% to 1.5%, which is still expansion, although a “rather significant reduction” than earlier expectations.
In fact, according to Kamal Bhatia, President and Executive Director of the main management of Asset Management, the incentive of domestic consumption due to such trade policies could help the US economy grow more than it was predicted.
This is a development story. Refresh for updates.
