US Slump, Oil Trouble Could Rock World: Report

Key factors threaten in coming months
By Lucas Laursen,  Newser Staff
Posted Jan 9, 2008 8:48 PM CST
A field full of wheat is seen in London, Ohio in this June 13, 2007 file photo. Wheat prices surged above $10 a bushel to an all-time record Monday, Dec. 17, 2007 amid concerns that robust sales will...   (Associated Press)
camera-icon View 2 more images

(Newser) – The world economy may be in for some shocks this year because of a potential US recession, record-setting oil prices and food shortages, warns a report by the World Economic Forum. Worries about terrorism, disease, and natural disasters have taken a back seat to world business leaders' concerns about an economic implosion. Slower growth in China and Middle East volatility are also on the watch list this year.

There are "few reasons to believe that energy prices will fall” in the long term, the report warns. In the event of a US recession, "economists are divided on whether domestic-led growth in Asian markets can drive the global economy," add the authors. In addition, "the resilience of the worlds food system will be severely tested in the next few years."