‘We Do Think the Economy Slips Into a Recession’: Major Economist Issues CNBC Grim Economic Outlook Despite GDP Growth

Despite the news of economic growth in the latest gross domestic products report, some major economists are still warning of a looming recession.

Tiffany Wilding, an economist for the massive investment management company PIMCO, joined CNBC’s Squawk Box on Wednesday to react to news of GDP rising by 2.9 percent, but her outlook was not too rosy despite the presumably good news.

“If you dig into the details of the quarter three GDP numbers, what you find is when you exclude those more volatile categories, growth was subpar,” she said, referring to “inventories” and “trade numbers” as the typically “more volatile categories.”

Wilding also pointed out a stall in “core growth” increases as a reason to have a lack of confidence in the direction of the economy.

“Core growth has decelerated quite a bit and that’s before you start to feel the effects of Fed tightening,” Wilding said.

The economist suggested she and PIMCO, which handles trillions in funds, are seeing a recession coming in the near future, despite the positive news of GDP growth.

“We do think the economy slips into a recession next year under the weight of the financial conditions tightening that we’ve seen so far,” Wilding said. “But nevertheless, of course it’s always good news to have some slight upper revisions to the third quarter GDP growth.”

Bank of America CEO Brian Moynihan notably predicted a recession this week too, though his outlook was slightly less gloomy than that of Wilding. Moynihan predicted Tuesday on CNN that 2023 would likely bring with it a “mild” economic recession, but he struck a slight tone of optimism about the economy.

“At the end of the day, the consumer has held in well. The consumer has stayed reasonably strong because they’re employed,” he said.

Watch above via CNBC