Brace for the US economy to crash-land as the banking turmoil creates a credit crunch, Allianz says

• The US economy is going to crash-land into a recession in the second half of 2023, according to Allianz.
• The German insurance-to-asset management giant predicted US output will shrink 1% between mid-2023 and year-end.
• "Rapidly tightening credit conditions, exacerbated by the banking crisis" will fuel the downturn, Allianz said.

Brace for the US economy to flounder in the second half of this year because the turmoil in the regional banking sector is going to trigger a credit crunch, Allianz has warned.