who believes we will have a world recession this year?

Question

and why?

Answer 1

?????????? World recession????????????
This is a new one. Wouldn't it be impossible for the whole world to be in recession at the same time. Then it would be the same as it is now. Maybe we are in a recession and we don't even know it.

Answer 2

There is obviously going to be a recession sooner or later, the boomb/bust cycle still exists. The question is will it be a soft or a hard landing (in other words will the US government be able to pull policy strings and contain any economic impact to limit the damage or will recession just let rip across the economy. If it does then there will be a world recession, since if the 'good half' is doing badly it in no way follows that the bad half (Africa, most of asia) is doing well, in fact they will suffer more than anyone else!

As for India and China, they are expanding markets but still grossly dependent on the west as consumers of their goods and services, 40% of Chinas GDP is made up of exports to the US. If there is no one lefe to buy all those cheap dishwashers and microwaves then what happens to the Chinese sweatshops?

Answer 3

We're headed for one, that's a no-brainer. I'm not sure about the timing, though--it might not hit until 2008 (early).

Why? Well, for one thing we have had a long period of sustained growth--and a consolidation is normal. But there are a number of added factors:
--The high deficits are going to trigger inflation sooner or later, and that will tend to slow real growth
--increased energy prices are already hurting the consumer products and industrial sectors
--The housing market is already in the dumps--and considering the extremely high prices attained, isn't likely to recover quickly
--real wages have not kept up--in fact, they've declined slightly, compared to the growth of the economy. That means trouble for the retail sector.

The good news is, the American economy is basically sound--despite all the hype you'll hear, we'll weather this okay. It's happened before and will happen again.

Answer 4

Cant see a global recession, as China and India are emerging markets. I do think a lot of European countries will suffer as well as America and just maybe Britain, but having said that Britain has one of the strongest economies at the moment.

Answer 5

An impossible situation and certainly China is many years from a recession

Answer 6

I don't think there will be a Global recession but there is a real squeeze in the UK this year. Costs are going up and up as tax increases bite and overregulation stops anything getting done effectively.

Answer 7

IMMA BREAK OFF SOME KNOWLEGE FOR YOUR YOUNGASS.. ITS IMPOSSIBLE FOR A WORLD RECESSION...IF HALF THE WORLD IS DOING BAD...THEN THE OTHER HALF IS DOING GOOD...THATS LIKE TRYING TO PUSH AIR IN A BALLOON TO ONE SIDE TO GET RID OF ALL THE AIR IN THE BALLON ITSELF. YOU JUST BEEN BLESSED