A striking fall in the stock market and other economic clues have boosted fears of another economic recession worldwide. It seems like, every new day is coming with a course of bad news with an emerging risk of severe decline in the global economy. An increasing trade war with China seems one of the aspects liable for the massive plunge. This year, China has reported the lowest growth in commercial production since 2002. While industrial production in euro-area has almost decreased in the past few years as the global expansion goes down.
Now the U.K. and U.S. bond markets have issued their largest recession warnings since the international economic downturn. Europe is also experiencing a negative manufacturing output. Even more, Germany’s economy has shortened due to a fall in exports. The country has reported reducing GDP (Gross Domestic Product) with it’s a decade-old bond striking a record -0.62% output. The latest news from the commercial giants has affected market comfort as a result of President Trump’s statement. The Trump government has decided to hold some tariffs on Beijing. The decision highlights to lay off charges which the government has imposed at the begging of the current month. As a result of the announcement, European stocks have experienced a massive fall on Wednesday, but bonds have increased.
Whereas, economies across the globe are indication weak spots which could lead to a global recession. We can call it a giant hangover, which is a result of universal economic fact collapsing and crumbling market. It seems like trade wars are not that simple to win. Besides, the trade war between the U.S. and China has changed the international growth picture. In the previous week, the U.K. has notified below zero GDP growth in the prior quarter. According to Morgan Stanley, if the trade war continues to rise, we could see the global economy get inside recession in nine months. The recession has gradually increased pressure on governments to take action in the wake of the crisis with tax incentives.
