The existing crisis events are still there, the problems are unresolved and another round of the global financial crisis is round the corner. This is what Liao Min, Director-General China Banking Regulatory Commission, thinks on the matter. He predicts a new major crisis within the next 5 years. If that’s the case, the global economy is not going to recover up to the pre-crisis level for years (if not decades) to come.
The pessimistic forecast was given during the recent World Economic Forum in Abu-Dhabi. Once again, the Chinese expert predicts another major crisis because many of the factors that caused the first global crisis in 2008 are still unresolved.
Apparently, some of the central banks and governments around the globe took some steps to get rid of the economic deterrents. Still, these countries are outnumbered by those that made little to no progress in fighting the crisis drivers. At the same time, low interest rates in some economies led to delayed structural reforms and abused financial discipline.
All of that leads us to believe that the global economy is not going to recover up to the pre-crisis levels in the foreseeable future. On top of that, chances are that another major crisis will break out in a matter of 5 years or so. At the same time, it is hard to predict where it is going to start. This means that this crisis is going to have most of us over the barrel once again.
