Allianz, one of the world's leading insurance companies, recently published a report predicting imminent economic downturn in the United States. The research and analysis team at Allianz believes that the U.S. economy is headed towards a crash landing. With over 122 million private and corporate customers worldwide, Allianz is well-positioned to assess global economic trends.
They point to upwards of a dozen U.S. banks that have shuttered, including Silicon Valley Bank and Signature Bank, as a sign that credit conditions are tightening and have created a crisis in the banking sector. This negative confidence in the banking system has been seen in other parts of the world too, including Europe's energy situation.
The Allianz team believes that this slump in confidence as well as additional factors such as higherinterest rates and reduced investments will lead to a recession in the fourth quarter of 2023. Such a situation will specifically affect housing, manufacturing, and construction industries disproportionately.
The analysis from Allianz is in line with other prominent people in the financial industry who have warned of the impending crash. Rich Dad Poor Dad author Robert Kiyosaki, prominent economist David Rosenberg and billionaire Barry Sternlicht have all expressed their opinion about the hard landing awaiting US economy.
It remains to be seen what measures the US government and Federal Reserve will take to prevent a systemic crisis from settling in. Historically, financial crises have been met with bailouts from respective countries but it is yet to be seen if the same will be true in this case.
Ethan Garcia
- 2023-04-10
Allianz Predicts Imminent US Economic Downturn
Allianz, one of the world's leading insurance companies, recently published a report predicting imminent economic downturn in the United States. Factors leading to the crisis were pointed out and warnings of a hard landing were echoed.
