The global recovery “is in danger of skidding off course”, according to the latest Brookings Institution-Financial Times tracking index of the world economy, with growth slowing sharply amid financial turbulence and policy paralysis.
The gloomy prognosis applies across the Group of 20 leading economies, the TIGER index shows, although the slide back towards stagnation is much more prevalent in the advanced world compared with emerging economies.
Professor Eswar Prasad of the Brookings Institution said: “Debt crises, weak employment growth and policy dithering in the major advanced economies have exacerbated global economic uncertainty.”
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