Famous American economist Nouriel Roubini is sure that there is not going to be any major crisis in 2016. Still, this year is going to be a tough one for international commodity markets as well as many economies out there, especially emerging ones, the expert says. By the way, Mr. Roubini has been famous for his prediction of the 2008 global crisis, which is why he has been enjoying respect in the international financial community ever since.
Multiple Reasons For Economic Challenges
Mr. Roubini is convinced that there are at least 7 major sources of global risk at this point while over the past years there used to be one one or another source of such risks at a time – the Eurozone crisis, the market hysteria of the Fed’s plans to start raising interest rate, possible Brexit, China’s hard economic landing and so much more…
First off, it is all about concerns over China's hard landing. The thing is, China is the world’s second biggest economy, which is why it cannot but affect other economies and international stock markets. China keeps on seeing its economy slowing down amid a flight of capital.
Secondly, a lot of emerging markets are facing major challenges in the form of macroeconomic imbalances, budget deficits, growing inflation, devaluing national currencies, and economic slowdowns. Most of those countries have still failed to implement all the necessary structural reforms. In the meantime, devaluing currencies make their dollar debts even more expensive than ever.
Nouriel Roubini is an American professor of Economics at New York University`s Stern School of Business and chairman of RGE Roubini Global Economics
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