US economy at risk of hard landing, warns Allianz Cryptocurrencies and ICOs

Allianz, one of the world’s largest insurers, has warned that the US economy is heading for a hard landing. “We expect economic momentum to deteriorate during the second half of the year due to rapidly tightening credit conditions, exacerbated by the banking crisis,” analysts at the insurance giant said.

Hard landing ahead, Allianz warned

Allianz’s research and analysis division released a report last week indicating that the US economy is “heading for a hard landing.” Allianz is one of the world’s largest insurers with more than 122 million private and corporate clients worldwide and more than 159,000 employees. It is headquartered in Munich, Germany.

“Negative confidence effects from the near-death experience in the US banking sector and the unresolved energy situation in Europe will determine the rest of the year,” Allianz analysts began. While they noted that the US economy “accelerated in early 2023,” they emphasized that this revival will likely be “short-lived.” The analysts continued:

We expect economic momentum to deteriorate during the second half of the year due to rapidly tightening credit conditions, exacerbated by the banking crisis.

Several major banks in the US recently went bankrupt, including Silicon Valley Bank and Signature Bank. The Federal Reserve and Treasury took steps to avoid a systemic crisis, including providing liquidity to the banking system, creating a new credit line to provide short-term loans to banks, and insuring all deposits of both banks. .

“We project a sizeable US recession (‘hard landing’) later in the year due to increasingly entrenched negative confidence effects, with housing, manufacturing and construction slowing as rates rise. interest rates further increase borrowing costs and reduce investment. ”, Allianz analysts detailed in the report.

Several people have similarly warned that the US economy is heading for a hard landing. Leading economist David Rosenberg predicted a recession and a hard landing in March according to data from the Federal Reserve Bank of Philadelphia. Rich Dad Poor Dad author Robert Kiyosaki also warned of a hard landing when federal bailouts followed the banking crisis. Meanwhile, billionaire Barry Sternlicht anticipates a hard landing for the US economy.

What do you think of insurance giant Allianz’s warning of a hard landing? Let us know in the comments section.

kevin helms

Kevin, an Austrian economics student, found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects, and the intersection of economics and cryptography.