The drumbeat of warnings about a looming worldwide recession is rising. Although such concerns seem premature, the latest update of the Brookings-Financial Times TIGER index indicates that major advanced and emerging market economies are all losing growth momentum.
The nature of the slowdown has ominous portents for these economies over the next few years, especially given present constraints on macroeconomic policies that could stimulate growth.
Weakening business and consumer sentiment, along with geopolitical uncertainties and trade tensions, have dampened business investment and could hurt future growth prospects. High levels of public debt are likely to limit the ability of major advanced economies to counteract a slowdown with fiscal stimulus.