As a result of debt issues and fiscal deficits, BlackRock said Tuesday that it expects to economic recovery to be "meaningfully slower" in the second half of this year.

That said, the New York asset management company said emerging markets will help lead the recovery.

Despite the pessimism, BlackRock does not expect a double-dip recession, but the economic recovery, which began early last year, has not been sustained this year.

"We do not believe that we are slipping back to recession, but we do expect the global economy to grow at a meaningfully slower pace in the second half of 2010," Stephen Hull, a director and investment strategist at BlackRock, said in a statement.

Global equity valuations were close to their historical average and equity risk premium, which investors demand for owning equities over risk-free assets was back to levels seen during the global financial crisis, according to BlackRock.