Paul Krugman warns of a possible global recession this year or in 2020

Panayiotis Tzamaros | ullstein bild via Getty Images

Lecture by Nobel Prize winner economist Paul Krugman in Athens, Greece on Friday, April 17, 2015.

There is a decent chance the world economy is headed for a recession in 2019, according to Nobel Prize-winning economist Paul Krugman.

Market participants are increasingly worried about the prospect of a serious economic downturn over the coming months, with a long-running U.S.-China trade war souring business and consumer sentiment.

Most economists, as well as some the world’s business elite, agree that economic growth is slowing but policymakers have expressed some hope for a soft landing rather than an outright recession.

Speaking at the World Government Summit in Dubai, United Arab Emirates on Sunday, Paul Krugman said there are good reasons to be skeptical about this scenario.

When asked whether investors should expect to see a recession over the coming months, Krugman replied: “I think that there is a quite good chance that we will have a recession late this year (or) next year.”

Paul Krugman is a renowned American economist and professor emeritus of Princeton University’s Woodrow Wilson School. He won the Nobel Prize in 2008 for his work on economic geography and identifying international trade patterns.