WORSE than 2008: Warning for global economy as China and oil threaten to destabilise WORLD
BRITAIN and the world could be about to enter a recession that will be more brutal than 2008 thanks to China’s slowing economy, experts fear.
By LANA CLEMENTS
Express.co.uk
Wed, Jan 20, 2016
China’s has the second largest economy in the world and represents around 12 per cent of global GDP and 18 per cent of global manufacturing exports.
At the same time, it has built up huge levels of debt within its stock market helping to create a huge bubble that now looks set to burst.
The country’s slowdown has huge far-reaching impacts on the rest of the world.
In Britain, China’s slowdown is likely to mean company earnings are lower, keeping interest rates and commodity prices at rock bottom.
It comes as the oil market is crashing putting further pressure on firms to stay afloat.
Over the past year, oil companies have already cut thousands of jobs.
China’s slowdown and falling oil prices are part of the reason that stock markets have shed billions of pounds in value since the start of 2016.
Asian shares slid to their lowest levels since 2011 today after weak U.S. economic data and a massive fall in oil prices stoked further worries about a global economic downturn.
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