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Is the world heading towards another recession?

As the Chinese economy weakens, the US was supposed to be the engine of global growth. But some economists say economic indices in fact point to another US slowdown.

Previously, the labour-abundant economies of East Asia merely produced cheap manufactures for consumption in rich countries. Firms such as Apple made large investments in China to have their products assembled from the parts and components made in several different places.

GOING by economic history and theory, it would not be unusual for the world to be heading towards another recession. Economic downturns occur every seven to 10 years. At this time, the world has been in the recovery mode for seven years; the Great Recession of 2008-09 ended formally in 2009. If...