Australia's economy is slowing down while still growing, but economists warn a number of key countries could hit recessions at the same time.
The Commonwealth Bank's Global Markets Research team says Germany is probably already in recession, while the United States, Japan and the United Kingdom have elevated risks of doing the same.
"Economic stimulus is not yet gaining traction in China. Brexit still looms large in the UK," the report released on Friday said.
"The bottom line is a deeper synchronised downturn in the major economies is looking more likely."
The report says the team is most worried about the US and Japanese economies.
"The trade tensions between the US and its major trading partners has both destroyed and diverted trade," it says.
"Ironically, the US trade deficit has widened."
But it's not all bad news.
"Unemployment rates in the major developed nations are near estimates of full employment," the report said.
"Many central banks have lost patience waiting for inflation to return to target."
Australia has so far benefited from the US-China trade war, after the Chinese government announced a huge stimulus package in March in response to the tensions.
Australian Associated Press