Via Aljazeera : After the UK’s Brexit vote, are we on the brink of a global recession?
The outcome of the EU referendum in Britain didn’t just shake-up the United Kingdom, it also brought great uncertainty to the global markets.
The impact of the Brexit vote is becoming more and more apparent, and there is no telling when or where it might end.
Counting the Cost is back on the trail of Brexit again this week, looking at where the money is moving around the world and why.
Gold is strong (it has gone up by more than 25 percent this year) and so is the US dollar. Government bonds – even with their low returns – are looking favourable too. And it’s all because of the huge uncertainty that the Brexit vote has thrown up.
The governor of the Bank of England, Mark Carney, has unveiled a plan to allow banks to release almost $200bn in funds to lend to home buyers and businesses, but he also warned there is a limit to what his organisation can do to ease the economic uncertainty.
“The UK has entered a period of uncertainty and significant economic adjustment, the efforts of the Bank of England will not be able to fully and immediately offset the market and economic volatility that can be expected while this adjustment proceeds,” Mark Carney said.
So what is next for the UK and the world? Are we on the brink of a global recession?
Our guest Russell Jones from economics firm Llewellyn Consulting says he is more nervous about the economic outlook now, that he was back in 2008 when the financial crisis hit. So, is it all the start of more bad news for the global economy?
Faiz Jamil investigates for Counting the Cost and we talk to Rajiv Biswas, Asia-Pacific chief economist at HIS.
ALJAZEERA | Brexit fallout: The global economic impact