Nouriel Roubini believes 2013 will be disastrous

In a recent interview with Bloomberg, famous economist Nouriel Roubini shared his thoughts on the fiscal cliff and global economy. He believes that there is a chance a perfect storm could crash the economy in 2013.

This however is not Roubini’s baseline scenario. His baseline scenario includes low economic growth and recession in advanced economies – like the U.K., the euro zone or Japan but not in the United States.

If a fiscal cliff occurs in the USA a perfect storm could follow. This would plunge the United States into recession. Moreover, this could happen if the crisis in the euro zone gets worse and if Greece exits the European Union, if there is a hard landing in China and last but not least, if a war starts in the Middle East between Iran and Israel with oil prices going to 200 dollars a barrel.

The thing which Roubiniis the most concerned about is the conditions in the euro zone. According to recent data, the European Union has already gone into a double-dip recession. Roubini also predicts that nations such as Cyprus, Italy and Spain will remain in recession in the course of 2013 and beyond.

Nouriel Roubini is confident about 2013 as he cites the front-loaded fiscal austerity, the low levels of business, the credit crunch by banks and the overvalued euro.

You can watch the full interview with Nouriel Roubini below:

 

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