A tale of tighter conditions

Also Interesting

• The Aristotle List: 10 improbable but possible outcomes for 2022
• North Korean wobble
• Opportunities as oil nears bottom

Macro and market Perspectives

Financial conditions – which have tightened significantly since the summer – describe the changes in financial asset prices and the impact they have on economic growth. The more financial conditions tighten, the more they weigh on economic growth. The more they ease, the more they boost growth. Many existing measures of financial conditions are misleading, in our view – so we have created our own financial conditions indicator (FCI). It provides a measure of the impact that financial conditions are exerting on the growth outlook, as indicated by our BlackRock Growth GPS.