One of the world’s leading financial experts has warned that a “perfect storm” could be about to hit Western economies.
There is rising concern that the U.S. economy will slip into recession next year dragging many Western economies – including Britain – down with it as the global credit crisis worsens.
The Washington-based International Monetary Fund has warned of a “perfect storm” caused by surging oil prices and the turbulence on the world’s financial markets.
Its chief economist, Simon Johnson, said: “The combination of the global credit crunch and high oil prices could bring a big reduction in international trade from which no one would be immune.”
Mr Johnson cautioned that the current projections for the American economy and those of Europe are “too optimistic” and would have to be downgraded.