Experts: Recession could be on its way in 2019

Experts: Recession could be on its way in 2019
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Key financial indicators suggest a global recession could be on its way in 2019, a Daily Telegraph UK report has said.

Financial data from the United States, Europe, Japan and China suggest the global economy is likely to slow later in the year after an overall drop in global money supply.

The United States in particular has seen its broad money supply drop to a six-year low and is headed for a stall, the Telegraph reports.

The drop in global money supply could be a result of many central banks shifting away from "quantitative easing", the report said.

Quantitative easing is the introduction of new money to an economy by a central bank. It was popular as a tool to stimulate economies after the Global Financial Crisis.

Professor Tim Congdon of the Institute of International Monetary Research said the US Federal Reserve had misjudged the full impact of reversing quantitative easing and may be making an error in withdrawing stimulus too quickly.

"I don't think there will be a recession because the Fed will change course, but there may well be a 'growth recession', and it is a big threat to asset prices," he told the Telegraph.

Simon Ward from global investment management company Janus Henderson said the economic growth rate of the Eurozone had dropped to 2.3 percent over the last three months, the slowest since the Eurozone debt crisis in 2009.