One of the biggest asset management firms in the world, Blackrock, has issued a warning that the year 2023 will experience a recession unlike any other.
According to Blackrock’s recently released 2023 Global Outlook study, in a world with a supply-based economy and significant inflation, a new economic playbook is necessary.
Asset management and investment firm Blackrock has provided its forecasts for the potential developments in the financial markets in the upcoming year.
The business, which is thought to oversee $8 trillion in assets, predicts a period of recession brought on by central banks’ efforts to contain inflation.
Its 2023 Global Outlook study, however, predicts that this recession will be distinct from others in the past.
In contrast to previous recessions, this one: In our opinion, loose policy is not going to benefit risk assets.
Additionally, Blackrock asserts that since equities are not yet priced for this recession and the economic harm brought on by central bank activities is still growing, they will likely suffer more.
The paper claims that before reaching their targeted inflationary targets and sparking economic crises, central banks will have to discontinue tightening measures in relation to inflation.
The collapse of FTX, formerly one of the biggest cryptocurrency exchanges on the market, according to Larry Fink, CEO of Blackrock, will kill off the majority of bitcoin businesses.