Warnings of possible recession pile up for global economy


now as you can see there South Korea has
economic difficulties of its own to cope with but warnings that signal an
impending global recession measured as two consecutive quarters of contraction
are blaring around the world as we speak our business correspondent Kim her song
has this report on the signals to look out for and the reasons for the global
slowdown the US bond market is sounding the alarm of a possible recession the
spread between the two year Treasury yield and the ten year yield inverted
for the first time since 2007 on August 14th an inverted yield curve is a
bellwether for an economic recession long-term bills have a higher risk
premiums and therefore lower yields but a higher tenure issue means investors
believe they will make more by holding a long term Treasury expecting the value
of a short term base to plunge it as the economies lose
according to credit Swiss the last five inverted yield curves all led to
recessions that happen an average of 22 months following an inversion Britain
also saw an inverted yield curve and Germany’s Treasury bond yields are
heading further down into negative territory the price of gold speak o to
safe haven for many investors is at a six-year high the real economy is also
losing steam China saw its second quarter growth had its slowest pace in
near 30 years South Korea recorded negative growth in the first quarter two
other export powerhouses Germany and Singapore also saw their economies
contract in the second quarter on falling global demand while the u.s. is
still enjoying solid economic growth its manufacturing August PMI fell below the
50 mark for the first time since 2009 indicating a near-term manufacturing
contraction the problem of low productivity and the widening wealth gap
remains unsolved since the 2008 global financial crisis interest rates are at
record lows yet supply is higher than demand in addition new fact
like the us-china trade war our accellerating D slowed down the us-china
trade spat has not only led to higher tariffs between the world’s two largest
economies hurting consumers and exports but also added uncertainties to
businesses driving down investment a No Deal brexit pro-democracy protests in
Hong Kong and tensions between South Korea and Japan also add to downside
risks it remains to be seen whether the warning signs will lead to a recession
but rising populist sentiment and protectionism is making it harder for
world leaders to work in unison to support the global economy metal anyone
yes

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