US recession here, says Walker

2008-01-15 Hong Kong

Asianomics chief executive Jim Walker said yesterday the US economy is already in recession and a global credit contraction will last at least two years. MasterCard Asia-Pacific economic adviser Yuwa Hedrick-Wong said that due to a drop in housing prices in the United States, its consumer spending will be cut by nearly US$250 billion (HK$1.95 trillion) this year. Walker said China's exports will slow sharply in 2008 as a result. A survey recently conducted by MasterCard Worldwide shows that Hong Kong investors' confidence in stock markets has dipped.