By: ِYassmine ElSayed
CAIRO, Feb. 12 (SEE) – Media reports quoted Nobel Prize-winning economist Paul Krugman warning that there is a chance the world economy is headed for a recession in 2019.
Speaking at the World Government Summit in Dubai, United Arab Emirates Krugman said there are good reasons to be skeptical about this scenario late this year or next year.
Krugman said it was unlikely to be just “one big thing” that would prompt an economic downturn. Instead, a range of economic headwinds would increase the likelihood of a slowdown.
He highlighted President Donald Trump’s tax cut stimulus as one area of concern, saying the program was “not very effective.” Krugman also warned it was “starting to look like the bubble may be deflating” when it comes to tech growth.
Krugman said: “The main concern has always been that we don’t have an effective response if stuff slows down, “The place that looks really close to recession right now is the euro area,”.
According to CNBC, Market participants are increasingly worried about the prospect of a serious economic downturn over the coming months, with a long-running U.S.-China trade war souring business and consumer sentiment.
Most economists, as well as some the world’s business elite, agree that economic growth is slowing but policymakers have expressed some hope for a soft landing rather than an outright recession.