Christine Lagarde, managing director for the International Monetary Fund (IMF), warned that the world faces the risk of a “lost decade” and that “there are dark clouds gathering in the global economy.”
Reiterating her call for global cooperation, she added,
If we do not act, and act together, we could enter a downward spiral of uncertainty, financial instability, and a collapse in global demand. Ultimately, we could face a lost decade of low growth and high unemployment.
Following a “financial dialogue” between China and India, it was announced that the global economy is now in a “critical phase…. There are clear signs of a slowing as developments in advanced economies begin to weigh on [both of] these countries.” And the Chief Executive of Hong Kong, Donald Tsang said earlier this week that the world economy faces a 50-percent chance of a recession.
Economist John Hussman thinks those chances are much closer to 100 percent.