A “hard landing” for the Chinese economy will likely lead the world into a recession in the next year, Citi’s global economics team has warned. Analysts at the Wall Street bank believe that a slowdown concentrated in emerging markets will drag down demand and see economic activity fall well below its potential across the world. They anticipate the global economy to slide into recessionary territory during next year, and remain there for most of 2017. The chance of such a global recession now stands at 55pc, staff estimated. Citi assigned a 15pc probability to the risk of a “severe recession”, in which the global economy enters a boom, overheats, and subsequently falters in dramatic fashion. Willem Buiter, global chief economist at Citi and a former Bank of England rate setter, said “that there is a high and rising likelihood of a Chinese, emerging market and global recession playing out”. […]