KKR Says Global Economy Enters 'Divergence Conundrum' as Growth Becomes Uneven

BY MT Newswires | ECONOMIC | 07:36 AM EDT

07:36 AM EDT, 06/10/2026 (MT Newswires) -- KKR (KKR) said Wednesday that the global economy continues to expand, but growth is becoming increasingly uneven across countries, industries, and asset classes in its mid-2026 outlook report.

The firm said artificial intelligence and productivity gains are supporting economic growth, while geopolitical tensions and higher energy costs are keeping inflation elevated.

KKR said it expects inflation to remain above pre-pandemic levels in most regions, and said central banks may face greater difficulty balancing economic growth with price stability.

The firm added that investors should focus more on high-quality companies, infrastructure, and energy-related investments, while taking a more cautious approach toward long-term government bonds and highly leveraged companies.

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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