Investment fund BlackRock warned that 2023 may produce a worldwide recession “unlike any other” and said that what worked during previous recessions “won’t work now.”
Analysts with BlackRock—a controversial investment fund that has pushed for environmental, social, and corporate governance, or ESG—say that the worldwide economy has entered a phase of higher volatility and that a recession is likely imminent after central banks such as the U.S. Federal Reserve have raised interest rates to curb decades-high inflation. Because of these actions, it said, there will be more market disturbances than in previous years.
“Recession is foretold as central banks race to try to tame inflation. It’s the opposite of past recessions,” BlackRock’s team said in the firm’s 2023 Global Outlook (pdf), released this week. It said that a deep recession may be the only way to tame inflation, which in the U.S., reached over 9 percent year-over-year in June 2022….