World falling into recession 2018?
"Uncertainty" is a word we've been hearing more and more on the news these days.
In fact, a new report says the buzzword is being uttered more by the media now... than even during the 2008 global financial crisis.... and it could get even worse in the months to come.
Won Jung-hwan reports.
Uncertainty in the global economy has soared to its highest level in 18 months.
According to the monthly 'Global Economic Policy Uncertainty Index' report,… the global uncertainty level in September reached its highest point since March 2017 at 247-point-8-5.
The index is worked out by counting how frequently news outlets from 20 countries, including the U.S., China, and South Korea, contain a trio of terms pertaining to the economy, policy and uncertainty.
And that value is now higher than the period during the 2008 global financial crisis.
According to experts,… the rate last month soared due to the worsening trade war between the U.S. and China, rising crude oil prices and higher interest rates in the U.S.
The Trump administration has so far imposed tariffs on 250 million dollars-worth of Chinese goods, with Beijing retaliating in kind.
And a further escalation is already on the horizon because President Trump has indicated the 10-percent duties will rise to 25-percent in January 2019.
Beside the trade war,… economic uncertainty in emerging economies could worsen following another interest rate hike in the U.S. at the end of last month.
The Federal Reserve increased the target range for its benchmark interest rate to two to two-point-two-five percent,... its highest level since April 2008.
The global economy uncertainty level could spike even further as the Fed plans to hike rates again in December.