The global economy may still avoid a recession, despite strengthening headwinds, according to CBRE chief economist Richard Barkham.
In a new analysis, Barkham notes that while several factors raise the possibility of an economic downturn – including the war in Ukraine, continued lockdowns in China, slumping consumer confidence and corporate spending, and tightening real estate debt markets – the overall outlook remains positive.
“Despite strengthening headwinds, economic growth remains steady,” Barkham writes. “The US and Europe continue to enjoy strong momentum from the reopening of their economies, which are not yet complete and should precipitate further above-trend growth.”
And in the Asia-Pacific region, “China is now stimulating its economy quite hard,” he says. “This should be good for global demand, while China’s depreciation of its currency should export deflation to the West over the next year. In the…
