oneill106_Yin LiqinChina News Service via Getty Images_china covid Yin Liqin/China News Service via Getty Images

Another Global Recession?

Between falling real incomes in advanced economies, China’s weakening outlook, and the uncertainties stemming from Russia’s war in Ukraine, there is more than enough reason to worry that the post-pandemic recovery is giving way to a downturn. But there is still much that policymakers could do to mitigate the blow.

LONDON – At the start of the year, I expressed concerns about the outlook for financial markets, owing to all the considerable uncertainties that I could identify, and to the many other potential risks that were not yet clear. This was after Russia had begun to mass troops on Ukraine’s border, but before it had invaded. Now that Russia has launched its war of aggression, it has been almost totally removed from the international economy and markets, and energy and food prices have spiked.

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