Five big economies are at risk of recession. It won’t take much to push them over the edge.
The British economy shrunk in the second quarter, and growth flat lined in Italy. Data published Wednesday show Germany’s economy, the world’s fourth largest, contracted in the three months to June.
“The bottom line is that the German economy is teetering on the edge of recession,” said Andrew Kenningham, chief Europe economist at Capital Economics.
Mexico just dodged a recession— usually defined as two consecutive quarters of contraction — and its economy is expected to remain weak this year. And data suggest that Brazil slipped into recession in the second quarter.
Germany, Britain, Italy, Brazil and Mexico each rank among the world’s largest 20 economies. Singapore and Hong Kong, which are smaller but still serve as vital hubs for finance and trade, are also suffering.
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WNU Editor: This monetary trend is not helping …. Ex-Fed boss Greenspan says ‘there is no barrier’ to Treasury yields falling below zero (Market Watch).