Stock markets could decline into the summer, as central banks continue their monetary tightening and negative factors weigh on economies, Brunella Rosa, CEO of Rosa & Roubini, tells CNBC Friday.

"Now it's time for a reappreciation of the economic fundamentals around the world in terms of growth," said Rosa, who co-founded his eponymous firm with well-known economist Nouriel Roubini.

Rosa pointed to the ongoing problems of inflation, slowing gross domestic product (GDP), rising interest rates and other headwinds, including the Ukraine war and supply chain constraints.

Wednesday's 932-point rally in the Dow was erased on Thursday, with the Dow losing 1,063 points and the Nasdaq falling nearly 5%.

"It's hard for markets to be totally optimistic when inflation is going up, growth is going down, and interest rates are rising fast across the globe," Rosa said.

Rosa believes the markets would respond more favorably to actions of the U.S. Federal Reserve and other central banks if they were as realistic as the Bank of England has been. BOE policymakers Thursday warned of recession risks in the UK.

"It's clear that all of them [central banks] are talking tough at this stage," Rosa said. "But the reality is that lots of tightening will eventually lead to economic contraction. In the euro zone and in the U.S., they are nowhere near realizing that, actually, there will be some form of contraction of economic activity."