The UK is in a recession as demand for Chinese-made goods slows. Prime Minister Boris Johnson said in a recent interview that "we're going to have a difficult period and we've got to be absolutely clear with people."
This week's episode of "Stephanomics" tackles the bumper crop of trouble facing the globe's central bankers, not to mention finance and trade ministers. Tom Orlik, the Chief Economist of Bloomberg, said that the Fed's 75 basis point hike in interest rates was necessary to cool inflation, but it didn't address the root causes. Saudi Arabia, Russia and Taiwan need to be persuaded by the Fed to increase oil production.
According to Orlik, the Fed's move is likely to increase borrowing costs for emerging nations and won't prevent a US downturn. It's going to be difficult to avoid a recession by 2023.
The UK may want to prepare for a sustained downturn rather than a short one. The housing market is cooling, and consumer confidence is low. Burden says that even if Britain avoids two quarters of contraction, almost every other economic metric is in a state of decline.
Enda reports on how Chinese manufacturers are feeling the pinch from inflation and rising interest rates. Since consumers are still spending, it doesn't qualify as a trade recession, but Chinese manufacturers warn that demand is drying up.
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