Much of this gloom has to do with the rise in fears that global economic growth could come to a grinding halt in the near future. The steep fall in the price of oil is another indicator of faltering demand for commodities as the global economy cools down. The tightening of monetary policy has often been followed by a slowdown in economic growth, and this time may be no different. Some hope that governments will ramp up spending to compensate for the lack of monetary policy leeway. A further escalation in the trade war between the U.S. and China is another imminent risk to global growth as additional tariffs could increase the overall tax burden on the economy.

Source: The Hindu January 04, 2019 18:45 UTC