Borge Brende, president of the World Economic Forum, gave a stark outlook for the global economy saying the world faces a decade of low growth if the right economic measures are not applied.
Speaking Sunday at WEF’s “Special Meeting on Global Collaboration, Growth and Energy for Development” in Saudi Arabia, he warned that global debt ratios are close to levels not seen since the 1820s and there was a “stagflation” risk for advanced economies.
“The global growth [estimate] this year is around 3.2 [%]. It’s not bad, but it’s not what we were used to — the trend growth used to be 4% for decades,” he told CNBC’s Dan Murphy, adding that there was a risk of a slowdown like that seen in the 1970s in some major economies.
“We cannot get into a trade war, we still have to trade with each other,” he explained when asked about avoiding a period of low growth.
“Trade will change and global value…
