COVID-19 becomes the trigger for a large-scale global crisis
Comparing the current situation in the global economy with the financial crisis of 2008 is quite justified
This opinion was expressed in a commentary to Nezavisimaya Gazeta by Igor Nikolaev, director of the strategic analysis department of FBK Capital.
“Both then and now we are dealing with a global economic crisis. True, now we are talking only about the beginning of the process. No one has canceled the cyclical nature of global economic development; falls occur every 7–10 years. Now the cycle is even a little longer,” the expert said.
He believes that the coronavirus epidemic raging in the world is an ideal candidate for the role of a trigger for a new crisis, for which the world economy is ripe, where a number of “bubbles” have inflated in financial markets.
“Such speculative build-up cannot continue forever. And when something globally negative happens, like now, panic sets in and everything falls. We will soon be dealing with a recession, and there will be no quick way out of it. The background of this crisis is unclear, and I think that the situation may be more serious than in 2008–2009,” Nikolaev notes.
According to him, even if a vaccine against coronavirus is invented quickly and the COVID-19 pandemic declines, the situation in the economy will not return to normal soon, and the crisis will last until the end of 2020 and, perhaps, will take over part of 2021.
As PolitNavigator reported, American bankers predict a “real disaster” for the global economy.
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