In a new note on Wednesday, Global Equities Research analyst Trip Chowdhry makes some bold predictions about the Chinese economy and the devastating potential impact it could have on Apple Inc. AAPL 0.28%. Chowdhry is now calling for China to slip into a recession by 2016, an event which he believes will have major implications for companies that rely on discretionary spending.

China Recession

Despite the fact that the World Bank is forecasting a +7.0 percent growth rate for China’s GDP in fiscal 2016, Chowdhry is now calling for a 2.0 percent contraction in China’s GDP in 2016. Without going into specifics, he draws comparisons to the aftermath of the U.S. Financial Crisis.

“Factoring in various events that led to [the] 2008 and 2009 Global Recession, we assume that the GDP of China will be negative 2% in 2016,” Chowdhry wrote.

Luxury Brands Impacted

Chowdhry warns…

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