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Global recession is possible within next 18 months - Saxo Bank

It is expected that global economic growth will slow significantly in the coming months amid a high level of borrowing in China and Europe, as well as a gradual weakening of the Donald Trump effect, CNBC reports with reference to Saxo Bank chief economist Steen Jacobsen.

According to Jacobsen, bank expects a recession in the near future taking into account a synchronous surge in lending activity and an increase of world inflation.

Earlier Jacobsen wrote that his bank is not forecasting a recession, but its economic model points to a significant slowdown in the economy as the significant credit surge that occurred in China and Europe in early 2016 did not change its tendency to negative.

Europe will become the driver of global economic growth and will outstrip the U.S. in the second and third quarters of this year, Jacobsen considers.

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