Global Economic Landscape: U.S. Slowdown and Asian Rebound

Global economic indicators vary between cautious growth downgrades and strong quarterly results from tech giants,
amid an intensifying trade conflict between major powers.

Contents:

Morgan Stanley
Samsung
China

Morgan Stanley

Expected Slowdown: Morgan Stanley Lowers U.S. Economic Growth Forecast for 2025

In a fresh sign of mounting concerns over the U.S. economic outlook,
Morgan Stanley has cut its forecast for U.S. GDP growth in 2025 to just 0.8%, down from its earlier estimate of 1.5%.

In a recent report, the bank explained that while the U.S. economy is still expected to grow,
it is facing mounting challenges that are weakening its momentum.
It noted that the gap between a slow-growth scenario and an outright recession is narrower than it used to be.

Although the bank currently rules out the likelihood of a recession, it emphasized that ongoing tight monetary policies,
persistent inflationary pressures, and geopolitical tensions could add strain to the markets in the coming period,
prompting a more conservative growth outlook.

This downgrade comes amid the escalating consequences of the trade war between the U.S. and its trading partners,
which is beginning to weigh heavily on American economic activity.

Samsung

Strong Sales Drive Samsung’s Profits Beyond Expectations in Q1

Samsung Electronics’ preliminary results for the first quarter of the year have exceeded market expectations,
supported by a recovery in memory chip sales and increased demand for smartphones.

The South Korean company announced on Tuesday that it recorded operating profits of 6.6 trillion won
($4.49 billion) for the three months ending in March, surpassing analysts’ projections of 5.1 trillion won.

While the profits were higher than the previous quarter’s 6.49 trillion won,
they showed a slight decline compared to the same period last year, when earnings stood at 6.61 trillion won.

In terms of revenue, Samsung saw an annual increase of around 10%,
reaching 79 trillion won — marking its highest-ever Q1 sales and the second-highest quarterly revenue in the company’s history.

Samsung is set to release its full financial results, including net profits and segment performance, on April 30.

China

U.S. Treasury Secretary: China’s Escalation Is a Grave Mistake; Balance of Power Favors Washington

Amid the intensifying trade war between the world’s two largest economies,
U.S. Treasury Secretary Scott Besant described China’s recent moves as “a big mistake,”
asserting that the United States holds a clear advantage in the ongoing dispute.

In an interview with CNBC, Besant stated, “I believe China’s escalation was the wrong decision.
In the end, what do we have to lose from raising tariffs?
We export to China one-fifth of what they export to us, so the damage will be greater on their side.”

The secretary added that around 70 countries have contacted the White House to begin trade discussions,
highlighting President Donald Trump’s commitment to addressing global trade imbalances.

Besant clarified that the imposition of import tariffs is ultimately aimed at bringing jobs back to the U.S. economy, stating,
“We might be building a tariff wall, but in the meantime, we’re reaping great benefits from those tariffs.”

Global Economic Landscape: U.S. Slowdown and Asian Rebound

Global Economic Landscape: U.S. Slowdown and Asian Rebound

Related Topics