Risks have Increased for an ‘Anti-Goldilocks Economy’: Pimco

Popular American-based, Investment company, Pimco has said that the ongoing conflict between Russia and Ukraine will severely affect the supply and this will eventually will result in a global "anti-Goldilocks" economy. The Bond giant further said, inflation will be too high and the economy will see stunted growth. Analysts at the firm said, that the Russian invasion of Ukraine followed by extensive sanctions of the western alliance on Russia has seriously affected the supply chains around the world. In its released statement, Pimco said: "The global economy and policymakers are confronted with a stagflationary supply shock that is negative for growth and will tend to push up inflation further." The prices of essential commodities and fuel are soaring high due to supply chain disruptions and uncertain future market outlook. The team of Pimco told that the Pandemic affected economy coupled with supply chain disruptions and ongoing conflict will result in what it calls an 'anti-Goldilocks economy’. The team said: "In combination, these could easily result in what one participant at our forum called an 'anti-Goldilocks economy': an economy that will be both too hot in terms of inflation and too cold in terms of growth."