Global Economic Collapse: Here Are The Countries On The Brink Of Recession Going Into 2020

Sergei Klebnikov. Forbes Staff. October 28, 2019

Topline: Amid a global slowdown in economic growth that has seen central banks lower interest rates near zero or below in an effort to provide stimulus, here’s a look at which of the major economies are on high recession alert.

Hong Kong, following five months of citizen protests that have battered the city’s economy, has entered into a “technical recession,” with industries like tourism and retail especially hard hit from the ongoing turmoil.

The U.K., with its ongoing uncertainty over leaving the European Union (and still no end in sight), has watched its economy recently shrink for the first time since 2012, and a no-deal Brexit could well slide it into a recession.

Germany, the EU’s biggest economy, is set to slide into a recession thanks to a continued decline in its manufacturing sector as well as lackluster global auto sales.

Italy, the EU’s fourth-largest economy, was in a technical recession for the second half of 2018 and has faced continued economic woes from weak productivity, high unemployment, huge debt and political turmoil.

China’s economy has continued to slow amid the trade war, too, although not yet nearing a recession: The IMF forecast only 5.8% growth for the world’s second-largest economy in 2020, down from 6.6% in 2018 and 6.1% forecast in 2019.

Other highly stressed economies around the world include Turkey, Argentina, Iran, Mexico and Brazil, among others. Crucial statistic: The world economy will only grow 3% this year, according to IMF estimates—that’s the slowest rate of expansion since the global financial crisis started in 2008.