Slowdown, but not a downturn
The autumn of 2018 has been marked by financial market volatility in the presence of concerns that the next recession is getting closer. Most major economies have continued to grow at a decent pace, but political events cast doubt on the sustainability of economic growth. What could central banks and governments do to combat a recession when policy rates are already low, budget deficits are large, and government debt levels are high? Although downside risks are abundant, the economic outlook in the near term is actually quite good. And policymakers are not empty-handed if risks do materialise.
For more information, please contact: Anna Breman, Group Chief Economist, phone:+46703149587