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Allianz, one of many world’s largest insurers, has warned that the U.S. economic system is headed towards a crash touchdown. “We count on the financial momentum to deteriorate in the course of the second half of the yr on the again of quickly tightening credit score circumstances, exacerbated by the banking disaster,” stated the insurance coverage large’s analysts.
Crash Touchdown Forward, Warned Allianz
Allianz’s analysis and evaluation division revealed a report final week stating that the U.S. economic system is “headed in the direction of a crash touchdown.” Allianz is among the world’s largest insurers with over 122 million personal and company prospects worldwide and greater than 159,000 workers. It’s headquartered in Munich, Germany.
“Destructive confidence results from the near-death expertise within the U.S. banking sector and the unresolved vitality scenario in Europe will form the remainder of the yr,” Allianz’s analysts started. Whereas noting that the U.S. economic system “picked up tempo in early 2023,” they harassed that this revival will possible be “short-lived.” The analysts continued:
We count on the financial momentum to deteriorate in the course of the second half of the yr on the again of quickly tightening credit score circumstances, exacerbated by the banking disaster.
A number of main banks within the U.S. failed not too long ago, together with Silicon Valley Bank and Signature Bank. The Federal Reserve and the Treasury took steps to stop a systemic disaster, together with offering liquidity to the banking system, creating a brand new lending facility to offer short-term loans to banks, and insuring all deposits of each banks.
“We challenge a sizeable recession within the U.S. (‘laborious touchdown’) on the finish of the yr on account of more and more entrenched unfavorable confidence results, with a slowdown in housing, manufacturing, and development as rate of interest hikes additional enhance borrowing prices and dampen funding,” the Allianz analysts additional detailed within the report.
A lot of folks have equally warned that the U.S. economic system is headed towards a crash touchdown. Outstanding economist David Rosenberg predicted a recession and a crash touchdown in March primarily based on information from the Federal Reserve Financial institution of Philadelphia. Wealthy Dad Poor Dad creator Robert Kiyosaki additionally warned of a crash touchdown as federal bailouts adopted the banking disaster. In the meantime, billionaire Barry Sternlicht anticipates a tough touchdown for the U.S. economic system.
What do you consider the warning by insurance coverage large Allianz a few crash touchdown? Tell us within the feedback part under.
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