(Newswire.net — February 28, 2016) — After several years of relative peace in the markets and stable global growth, the chances of a global recession are high again and are constantly growing, estimates the Citigroup Inc., an American multinational investment banking and financial services corporation.
According to the New York agency Bloomberg, economist Willem Buiter, chief leader for Citigroup, has said that the current growth of the global economy is at a very unreliable point after two to three years of relative peace.
Long-standing problems in the world’s economy are related to structural and cyclical slowdown in China and its unsustainable exchange rate regime, explained the economist from Citigroup.
They added that problems in the world economy are also caused by the huge debt levels in many countries of the world, as well as by the current regional and geopolitical crisis.
Citigroup economic experts also revised its growth forecast for the global economy for the current year to 2.5 percent from the previously projected 2.7 percent, reports the Bloomberg agency.
The latest worsening of the perspective on the global economy, as stated in the Citigroup report, is the result of the modest worsening in developed countries and the tightening of financial conditions in other countries.
The conclusion of the Citigroup report said that to avoid recession and greater potential of slowdown in GDP (Gross Domestic Product) growth, the world needed a global version of the Abenomics policy, which according to the terminology of the bank, meant a loose monetary policy combined with fiscal stimulus and structural reforms.
The final conclusion of the economists is not optimistic one at all. They warn the world that a new global recession is becoming more certain, and their predictions should be taken seriously.