Global Recession on Way: South China Morning Post

With trade tensions, increased protectionism and major economies in no mood to cooperate, global recession is inevitable and possibly even reach crisis levels. Monetary easing or fiscal stimulus may not be effective if countries are intent on isolation. Global trade growth is at its slowest and Anthony Rowley compares current economic troubles with previous recessions: “The renewed slowdown in trade this time is more complex and systemic than the one that followed the Great Recession, and it is accompanied by a global economy still dependent on residual monetary stimulus from the 2008 crisis to keep investment and consumption moving forward, if uncertainty.” The International Monetary Fund reports global debt is a historic high. Lack of trust could permanently disrupt supply chains, trade relations and global agreements on technological advancement. Rowley concludes there is still room for compromise and coexistence, but the space for maneuvering has narrowed. – YaleGlobal

Global Recession on Way: South China Morning Post

Normal policy tools may not work for a global economy in debt, with slowing trade and cooperation and nations forced to take sides between China and US
Anthony Rowley
Friday, June 14, 2019

Read the article from South China Morning Post with a warning on global recession.

Read about global debt from the International Monetary Fund.  

(Source:  Samba Mbaye and Marialuz Moreno Badia, IMF Global Debt Database)

Copyright © 2019 South China Morning Post Publishers Ltd. All rights reserved.

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