Jim O’Neill, a former chief economist at Goldman Sachs, says the global economy is “definitely” slowing down. While this alone might not be indicative of a recession, he says a global shock of some sort could elevate the risk of an economic contraction. Particularly if something went “really, really badly wrong in China.”

However, there are some things that policymakers can do to ward off the next recession.

O’Neill thinks it’s “a good development” to have more pragmatic leaders at the helm of central banks in the U.S., European Union and U.K.

Jim O’Neill has told CNBC that the single most important thing in the world economy is reviving the Chinese consumer.

China’s official government figures said the country’s economy slowed last year to 6.6 percent. The country is enduring an ongoing trade war with the U.S. while attempting a long-planned transition from a manufacturing and export-led economy to a consumer-driven model.

O’Neill who now acts as chair o…

Advertisement