Wall Street analysts see direct economic growth hit from SVB fallout
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(Reuters) – The crisis in small and mid-sized banks in the United States after the swift downfall of SVB Financial Group could further slow down the struggling economy and raises the probability of a recession this year, according to Wall Street analysts.
J.P.Morgan said the slower loan growth at mid-size banks could trim a half to one percentage point off the level of GDP over the next year or more.
Goldman Sachs raised its probability of the U.S. economy entering a recession in the next 12 months by 10 percentage points to 35%, citing the stress on the small banks.
(Reporting by Aniruddha Ghosh in Bengaluru; Editing by Dhanya Ann Thoppil)