Economists Fear Global Recession

MAHUA VENKATESH
Posted online: Wednesday, August 25, 2004 at 0000 hours IST

NEW DELHI, AUG 24: Global oil prices fell for third day in a row and hovered in the range of $42 per barrel on Tuesday. However, a sustained level of high prices may lead to another global recession, fear economists.

Global recession, they say, would mean slowing down of India’s exports. This may also result in a significant drop in capital inflow into the country.

According to them, global inflation would also rise following increased levels of international oil prices. This may also result in pulling down the production process resulting in subsequent fallout on the demand chain. High oil prices had led to global recession in 1974, 1980 and 1991.

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