Global recession looms, warns Nobel laureate Paul Krugman

Dubai, February 13 

There is “quite a good chance” of a global recession late this year or next year, Nobel prize-winning economist Paul Krugman has warned, citing a general lack of preparedness among economic policymakers.

Speaking at the World Government Summit in Dubai, Krugman said it was unlikely that just “one big thing” would prompt an economic downturn.

He said a range of economic headwinds would increase the likelihood of a slowdown.

Noting that the central banks often lack the tools available to insulate against market turmoil, Krugman said the planning for risk has been minimal.

He said instead trade wars and growing protectionism continue to dominate policy agendas, deferring attention and resources from what should be the real priorities. — PTI

"I think there is quite a good chance that we will have a recession late this year or next year. The main concern has always been that we don’t have an effective response if things slow down...We don’t seem to have a safety net" — Paul Krugman, Nobel Laureate