U.S. Bank Failures Pose Risk to Global Growth

Ripple effects of U.S. financial-system strains could lead to tighter credit, sharper slowdown worldwide

Many economists expected a significant downturn in global economic growth this year even before Silicon Valley Bank collapsed.Photo: Bryan Banducci for the Wall Street Journal

SINGAPORE—Turmoil in the U.S. banking sector isn’t just a problem for the U.S. It also increases the risks of a global recession. 

Many economists expected a significant downturn in global economic growth this year even before U.S. lender Silicon Valley Bank collapsed, because of an expected pullback in spending and investment in the U.S. and Europe amid climbing interest rates. 

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