World may face 1st recession in a decade
Given the rapidly escalating trade war between US & China, it seems that for the first time in a decade, the world is headed for a spell of recession. Tensions between Japan and South Korea apart from the possibility of Brexit from European Union have also added to worries.
In the U.S., the recession risk is “much higher than it needs to be and much higher than it was two months ago,” noted Lawrence Summers, a former U.S. Treasury secretary and a White House economic adviser. Central banks across the world (eg New Zealand, Thailand & India) are already lowering their lending rates as a result of this to promote growth.