Slower World Growth or Global Recession with the Trade War?

Abstract

After the slow recovery from the 2008–2009 global financial crisis, the world economy now faces even slower growth and the prospects of global recession triggered by the USA–China trade war. This paper starts by examining whether the slow growth of the world economy was due to wrong or inadequate economic policies to overcome the crisis (great recession) and return to growth, or for other reasons. Then, it examines the reasons the United States is growing faster than other advanced countries, the slowing growth of emerging market economies (and even economic crisis in some of them), and whether the world is now sliding toward a new global financial crisis and recession triggered by the current trade war.