There are constant reports of economic crisis in America. Sri Lanka’s economy is already in shambles. Signs of a terrible crisis are also being reported in China. Many more countries are expected to have a situation like Sri Lanka. And in the meantime, now famous economist Nouriel Roubini has warned of a catastrophic economic recession in 2022.
Nouriel Roubini is the economist who accurately predicted the 2008 economic crisis. It is said that when he first talked about the economic crisis, then no one took his words seriously, but all his words proved to be true. Then America went through a serious economic crisis. Nouriel Roubini was nicknamed Dr. Doom for his accurate 2008 prediction.
Now the same Nouriel Roubini has warned of a similar economic recession in the US and globally at the end of 2022. They have said that it can be frightening and can last for a long time. He has expressed doubts that it may go on till 2023.
This warning from Roubini, president and chief executive officer of Roubini Macro Associates, comes in an interview on Monday. According to a Bloomberg report, Roubini said, ‘Even in a general recession, the S&P could fall by 500 points, that is, up to 30 percent’. Along with this, he also said that he fears that it may fall to 40 percent. The S&P 500 is a stock market index of the United States.
Roubini suspects that the US and global recession will last through 2023, depending on how severe the supply shocks and financial crisis will be. Roubini said that achieving a 2% inflation rate would be an impossible mission for the Fed. They are expected to increase by 75 basis points in the current meeting and 50 basis points in both November and December. The fed funds rate is expected to be moved to between 4% and 4.25% later this year.
Nouriel wrote in The Guardian in July last year, “Today’s extremely vague monetary and fiscal policies, when faced with several negative supply crises, can result in stagflation (high inflation with recession) in the 1970s.” Is. In fact the risk is even bigger today than it was then.
Let us tell you that the economy of the world is in a bad condition this year. Recently there was bad news about China’s economy. Fears of an economic slowdown were being expressed in China. Chinese real estate developers are defaulting. Asia’s richest woman Yang Huyan has lost half her wealth. She was a stalwart in the Chinese property market. In the last one year, his wealth has decreased by more than $ 11 billion. The condition of Chinese banks is pathetic. China’s total debt is growing rapidly, which is many times more than its GDP. These are signs that are being seen as a sign of recession. Sri Lanka’s economy was devastated this year. There was a similar crisis in front of him as well.
Many small countries of the world are facing economic crisis and due to this the large economies of the world have been affected marginally. But if there is a slowdown in China’s economy, then its effect will not be like those small countries. It is feared that this will shake the economy of the whole world and will strengthen the fear of a long recession in the world.