CNBC: Economist Nouriel Roubini Sees Trade War Tipping Global Economy Into a Recession
Article by Yun Li in CNBC financial
The rivalry between the U.S. and China could be so disruptive that it’s starting to decouple the global economy and eventually causing a recession, according to Nouriel Roubini, the economist famously called the housing bubble.
“The consequences of this trade and tech war and cold war, are the beginning of de-globalizaion ... and the decoupling of the global economy. We’ll have to redo the global tech supply chain. And eventually by next year, if this escalates, it will be a global recession,” said the head of Roubini Macro Associates in an interview with Bloomberg TV on Tuesday.
“It has already been in the data — the collapse of CAPEX. And once the CAPEX is down, then the industrial production is down and the employment is down, and you have the beginning of a global recession that starts in tech, then in manufacturing, then in industry and then goes to services,” he said.
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