Paul Krugman expects a global recession this year, warns ‘we don’t have an effective response’
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Frankfurt’s skyline as viewed from the top floor of the new European Central Bank (ECB) headquarters
Late last week, the European Commission sharply downgraded its forecast for euro zone economic growth in 2019 and 2020.
The Commission said euro zone growth will slow to 1.3 percent this year from 1.9 percent in 2018 and is expected to rebound in 2020 to 1.6 percent.
The estimates were markedly less optimistic than the EU executive’s previous forecasts, released in November, when Brussels expected the 19-country currency bloc to grow 1.9 percent this year and 1.7 percent in 2020.
The news exacerbated fears that a global economic downturn is spreading to Europe.
“By the way, my track record for this is bad — as is everybody’s. No one is good at calling these turning points,” Krugman said.