An economist told the media Wednesday that there’s an “uncomfortably high” risk of the global economy being hit by the recession in the coming 12-18 months which would be irreversible by the policymakers.
The chief economist of Moody’s Analytics, Mark Zandi, thinks that the risks are high and that the recession might strike if something doesn’t stick to the script. He added that if they don’t have the recession in the upcoming 12-18 months their economy is going to turn out as a weaker one.
He further said that there are many factors required to avoid slowing down the economy while sticking to the script, which includes several remote factors like President of the USA Mr. Donald Trump not escalating the tariff war with China, the U.K. finding a resolution to Brexit and central banks continuing their monetary stimulus. Mark Zandi said CNBC’s “Squawk Box Asia” there are pretty high chances of the global economic recession.
Though economists appeared less worried about a recession, they agreed to Zandi’s sentiment about the weakening of the growth.
Eswar Prasad, who is a professor at Cornell University, when asked about giving their opinions about the recession, he said that though the faltering of the momentum of other sectors is not sustainable, consumer spending has helped support growth in several economies.
He further told CNBC’s “Street Signs Asia” on Wednesday that the consumers and households cannot be counted on to keep growth going. So, the only solution is to set up policies that are going to spur a revival of business and consumer confidence and end up boosting investments.