Economists say global economic slowdown to persist
Economists said the global economic slowdown is highly likely to persist despite efforts coming from central banks to impose monetary easing.
Though the U.S.-China trade war took the sidelines in the last four weeks, pushing stocks back to almost record highs, a record $17 trillion of bonds have negative yields and a U.S. recession is lurking in the markets.
Following the European Bank cutting its deposit rate into negative markers, the Bank of Japan and the Federal Reserve are set to impose rate cuts anew next week.
“More central banks around the world, led by the Fed and the ECB, are cutting rates. Fiscal stimulus is imminent, too, but yield curves still seem to be signaling a recession,” HSBC economist Janet Henry noted.
Brexit from the European Union compounded to the problems as it becomes more complicated.
“Most of the plausible risks we see are to the downside, including a possible no-deal Brexit in Q1 2020, another breakdown in U.S.-China trade negotiations,” said Ajay Rajadhyaksha, Barclays’ macro research head.
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