Allianz, one of the biggest insurance companies in the world, is predicting that the US economy will take a big drop. The analysts say it’s because banks are having trouble and there aren’t enough loans or credit around. So this means things might get worse as we move towards the end of the year.
Allianz, one of the biggest insurance companies in the world with over 122 million customers around the globe and 159,000 employees at its main office in Munich, Germany shared a report saying that the US economy looks like it’s headed towards a tough time.
The experts at Allianz said that bad stuff happening in the banking sector from America and the still-not-solved energy problem in Europe will have an effect on this year. They also mentioned that things in America are getting better, but only for a little while.
“We think that during the second half of this year, the economy won’t do as well because banks are starting to loan less money, which is making it harder for people to get credit.”
Several banks in the U.S. recently stopped functioning, like Silicon Valley Bank and Signature Bank. To avoid a bigger issue from happening, the Federal Reserve and Treasury got involved by giving additional money to the banking system, setting up a new borrowing service for banks who needed short-term loans, and made sure all deposits of both banks were secure.
At the end of this year, there will most likely be a big recession in the United States. This is because people have very low confidence in things like housing, construction, and manufacturing. As interest rates increase, it is making it more expensive to borrow money and invest, which is causing a slowdown.
Lots of people think that the U.S. economy is on its way to a bad crash. Economist David Rosenberg noticed this in March with data from the Federal Reserve Bank, and Robert Kiyosaki, who wrote Rich Dad Poor Dad, said this too because of all the bailouts happening due to the banking crisis. Barry Sternlicht, a billionaire, also thinks an economic crash is coming up.
A big insurance company called Allianz is warning us that something bad may happen – do you agree or disagree? Leave a comment down below and let us know what you think!