Global economies 'out of sync' - HSBC Asset Management

Global economy, HSBC, outlookGlobal economies and fiscal policies are "out of sync", according to a recently published HSBC Asset Management report.  

HSBC Asset Management's '2023 Mid-Year Outlook' report warns that a US recession is predicted to begin in Q4, followed by a contraction in 2024. Europe is expected to experience a recession in 2024 as well. 

Despite these warnings, credit and stock markets continue to trade well, creating a disconnect between economic indicators and market performance. 

The report suggests intelligent diversification into emerging markets (EM), which offer a better macroeconomic scenario than developed markets (DM). 

The anticipated recession is expected to resemble the early 1990s recession, with a 1-2% GDP drawdown. The market outlook is described as challenging and choppy due to tightening financial conditions and optimistic pricing of a "soft landing."

The global asset manager said it advises caution, particularly in risk and cyclicality, favouring interest rate exposure, European bonds and higher quality investment-grade credits. 

HSBC Asset Management identified emerging markets as an attractive asset allocation, offering lower country correlations and fewer financial stability concerns.

China and India are highlighted as growth opportunities, with China's domestic demand supported by high savings and India's strong recovery from Covid-19. Real assets are also positioned as defensive growth investments, with Asian Pacific markets and infrastructure assets presenting selective opportunities. 

© 2023 funds europe

Thought leadership


This whitepaper outlines key challenges impeding the growth of private markets and explores how technological innovation, when bolstered by the operational experience and global reach of FMIs, can provide solutions to unlock access to private market funds for a growing investor base.


Transporting goods by sea is the lowest carbon way of transporting goods. That said, the shipping sector contribute 3% of global carbon emissions, so we need it to get to net zero. Breakthrough technologies have the power to reshape the industry and drastically reduce its environmental footprint.



We often hear about the challenges related to sustainability data - in particular, the lack of consistency, comparability, and completeness. Update your information puzzle with Essential Sustainability Intelligence.


Discover how investing in real assets with a multi-asset approach can help build resilient portfolios.


Executive Video Interviews

Why fund admin tech is a key competitive advantage

Cian Hyland, Strategic Client Relationship Director at Deep Pool Financial Solutions spoke to us about how technology enables efficient data management, reporting automation and secure data access.

Insights from State Street

Cuan Coulter, Global Head of Asset Managers and Head of UK and Ireland at State Street, discusses how fund managers decide between the two cross-border fund domiciles, namely Ireland and Luxembourg, and why asset managers find managing data so difficult.

Unlocking access to private markets

Vincent Clause, who heads the global funds strategy at Euroclear and David Genn, CEO of Goji, sit down with Funds Europe to explain how technological innovation, bolstered by operational experience and global reach, can provide solutions that unlock access to private markets.

Sustainable investing in the DC world

Claire Felgate, a specialist in UK defined contribution pension schemes at asset manager BlackRock, talks with Funds Europe editor Nick Fitzpatrick about how - and the pace at which - DC pension schemes are adapting to the requirements of sustainable investment.



Join our webinar for a deep dive into the findings of the fresh-off-the-press EU Taxonomy 2023 Insights Report, based on Clarity AI's best-in-class coverage of EU Taxonomy reported data and CDP industry-leading environmental datasets. 

In this webinar, we discuss tools for optimising fund data management and distribution, the role of global fund classifications and ratings, and how technology and automation enhance data integrity and insights.