No signs of a global recession in the next 12 months: BlackRock's Fink

BERLIN (Reuters) – There is no sign that the global economy is slipping into a recession in the next 12 months, said BlackRock Inc. chief executive Larry Fink in a statement released on Saturday.

In an interview with the German business daily Handelsblatt, however, Fink warned that the global economy was in the last phase of a long growth cycle, suggesting that the slowdown was more likely.

"I see no signs of a global recession in the next 12 months," said Fink, who heads the world's largest badet manager.

"Central banks have eased their policy, mainly because of the weak quadrennial of 2018. We will go through a phase in which things are not great, but not bad."

He added, "But we are naturally in a late phase of the economic growth cycle."

The International Monetary Fund cut its global economic growth forecast for 2019 this month and said growth could still slow due to unresolved trade disputes and the risk of Britain leaving the European Union without agreement.

The global lender said some major economies, notably China and Germany, may have to take short-term measures to support growth and that a severe downturn may require coordinated stimulus.

German Finance Minister Olaf Scholz has announced he will not take on new debt to boost the growth of Europe's largest economy, saying tax cuts, bigger investments and solid work would continue to drive growth.