China’s economy is rapidly headed for zero growth, a meltdown that will hurt Brazil, Peru, Asia and Africa but leave the United States largely unscathed, according to a story on Politico.com
George Mason University economics professor Tyler Cowen was one of 23 economists who told Politico.com what to expect in 2016. Cowen said it’s China’s turn for a recession. The country’s debt, excess capacity and inability to reform state-owned enterprises lie at the root of the problem.
In the long term, China will rebound with growth as much as 4 percent.
“The United States will chug along at 2 percent growth, and mostly ignore what could be the beginnings of a major global recession,” Cowen says. “We are about the most insulated from this of just about anybody.
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