Investment firm BlackRock has predicted the US economy is set for “full-employment stagnation”, which is different to the job-less recessions and recoveries we’ve seen in the past, it claims.
If and when a global recession emerges, we would expect a sell-off in both equity and credit markets.
Economic downturns are part of a business cycle that will eventually end.
Is the US being pushed towards a deeper-than-necessary recession?
“For many people, 2023 will feel like a recession,” the organisation says.
Leaders of the World Bank and the International Monetary Fund warned of a growing risk of an economic slowdown next year.