How close to the recession lies the planet, and what we have to do this year to avoid it.
His fears of a possible recession in the global economy in 2019, Nobel laureate economist Paul Krugman said at a news conference in Dubai, CNBC reported.
“I think there is a fairly good chance that we will enter a recession later this year (or) next year,” Krougman said, arguing that it is unlikely to be just a “big event” that will cause economic recession. Instead, a series of financial exposures will increase the likelihood of slowing down … The main concern has always been that we do not have an effective response when the economy is slowing down. ” Right now, the eurozone is very close to recession. ”
Last week, the European Commission significantly downgraded its projections for euro area economic growth in 2019 and 2020. The Commission said growth will slow down this year to 1.3% from 1.9% in 2018 and is expected to recover 2020 to 1.6%. The estimates were considerably less optimistic than the Commission’s previous forecasts, published in November, when Brussels expected growth in the Eurozone to be around 1.9% this year and 1.7% in 2020. The news intensifies fears that the global economic downturn is spreading in Europe.
Krugman also argued that President Trabp’s stimulus program through a reduction in tax revenue is a matter of concern, calling the program “not very effective”.
“Markets are increasingly concerned about the prospect of a severe economic downturn in the coming months, with the US-China trade war being a challenge for entrepreneurship and the consumer climate. Most economists, as well as some global business elite, agree that economic growth is slowing down, but policy makers have expressed some hope for a “smooth landing” rather than a final recession, “said Krugman.