Explained: Why the US-China trade war might lead to a global recession

Researchers at Morgan Stanley have alerted that if US and China continue to heap increasing tariff and non-tariff barriers over the next four to six months, the world economy could enter a recession within the next three quarters (that is, 9 months).

Researchers at Morgan Stanley, a leading investment bank, have alerted that if US and China continue to heap increasing tariff and non-tariff barriers over the next four to six months, the global economic growth rate to fall to a seven-year low of 2.8 per cent, and worse still, the world economy could enter a recession within the next three quarters (that is, 9 months).