Top 12 Countries On The Verge of Recession in 2020.
It’s evident that a global recession is at hand. Europe is on the verge, if not in one already. Japan’s GDP growth is less than 0.4%. China’s growth is plummeting precipitously. The U.S. is now seeing clear signs of a recession next year.
Why?.
Simple; No one is borrowing any money, which is why interest rates are so low, and even negative Interest rates drop to encourage rich people and investors to borrow money. But now rich people and investors are actually paying countries like Switzerland to keep their cash .
that’s how afraid they are of losing it altogether by investing in anything else.
Why isn’t anyone borrowing?.
Simple; The wealth gap between rich and poor has gotten so bad that the rich have stopped investing in new businesses or their existing businesses because the poor (everyone else) has stopped buying. No one has money for anything but the essentials anymore. The rich can build all the new golf courses or movie theaters that they want to, but the consumers of their products have so little money (because the rich have accumulated so much money) that they can’t afford to spend money on anything other than food and shelter.
The chickens have finally come home to roost for the rich. Their greed has led to no customers for the products and services that made them rich. They wanted it all, and they got it all. Now the very foundation of capitalism is crumbling beneath their feet. No one wants what they’re selling.
Welcome to The Atlantis Report.
Over the last few weeks, there have been some startling leading indicators that we might witness a global recession sometime soon. An unlikely culmination of multiple factors is leading to this.
US-China trade war.
India’s GDP slowdown.
The Brexit turmoil.
Major economies worldwide have shown signs of economic slowdown or even contraction in Q2 2019. A quick look at the most significant economies confirms the apprehensions.
US economy grew by 2.1% in Q2 2019, down from 3.1% in Q1 and the slowest since Q1 2017.
China, the behemoth fueling a large chunk of global growth, witnessed a “paltry” 6.2% GDP growth, the lowest in 27 years, and even below the 6.4% recorded during the 2009 Financial crisis.
Japan beat GDP growth estimates in Q1 2019, but Q2 was a little slower.
Germany is the largest economy to actually shrink (by 0.1%) in Q2 ( compared to Q1 2019), reversing a decade long trend of growth.
As did the UK, for the first time in 7 years, shrinking by 0.2%, compared to 0.5% growth in Q1.
France also slowed down to 0.2%.
Finally, the second-largest Asian economy, India, is also slowing down, having recorded sub 6% GDP growth in Q1 2019. Also, both the real estate and the automobile industries are facing a slump.
Over the last six months, major stock market indices have barely budged, and in some cases like the Nikkei 225 has actually shrunk.
All the above are tell-tale signs of a looming recession — growth slump, contracting economies, slowing trade, and overall bearing market sentiments.
And the straw to break the “bull’s” back is the latest development on both sides of the Atlantic, the sure-shot harbinger of impending economic doom.
Today Twelve big economies are at risk of recession. It won’t take much to push them over the edge.