The Intelligence from The Economist Pressure gauged: the road to recessions
Jul 5, 2022
Henry Kerr, an Economics editor, discusses imminent recession risks across various regions. David Rennie, the Beijing bureau chief, sheds light on the alarming behavior of Chinese fighter pilots and the underlying distrust towards the West. Kinley Salmon, the Africa correspondent, shares a humorous anecdote about a disastrous haircut that challenges traditional economic theories, demonstrating how local experiences can reshape our understanding of economics in a global context.
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Recession Worries
- Recession worries are increasing as pandemic recovery faces headwinds.
- Factors like inflation, energy prices, and China's COVID response contribute to these concerns.
US Recession Risks
- The US faces recession threats primarily from rising interest rates to combat inflation.
- A mild recession may be necessary, but the Fed must avoid overdoing it.
European Economic Challenges
- High energy prices, exacerbated by reliance on Russian gas, drive Europe's inflation.
- The European Central Bank also raises interest rates, adding to the economic strain.