Professor Cao Heping from the School of Economics at Peking University has warned of recession risks for the world economy from anti-Russian sanctions imposed by the West.
Current geopolitical developments have added up to the global economic problems caused by the Covid-19 pandemic. Many nations are now gradually getting back to normal after the coronavirus crisis. Yet, global recession concerns are growing in the wake of the Russia-Ukraine conflict.
Cao Heping argues that since day one of the Ukraine conflict, the United States has shown little interest in peaceful talks nor it has tried to protect economic growth in any way.
The Western world imposed unprecedentedly tough economic sanctions against Russia in a blink of an eye, the analyst said. As a result, the European Union, the United States, the Middle East, and the Asia-Pacific region have faced serious economic costs.
Current concerns are associated with a double blow the world economy has suffered: the side effects of the pandemic and tough anti-Russian sanctions. Naturally, recession risks have started to grow.
Professor Cao Heping assumes a new crisis will lead to devastating economic consequences. After all, the global economy is still recovering from the Covid-19 pandemic, while household incomes have decreased sharply. The combination of these factors will trigger a decline in demand in developed countries, the economist concluded.
