September 6, 2009
[efoods]Nouriel Roubini, a leading economist who predicted the scale of global financial troubles, said a U-shaped recovery is possible, with leading economies undeperforming perhaps for 3 years.
He said there is also an increasing risk of a “double-dip” scenario, however.
“I believe that the basic scenario is going to be one of a U-shaped economic recovery where growth is going to remain below trend … especially for the advanced economies, for at least 2 or 3 years,” he said at a news conference here.
“Within that U scenario I also see a small probability, but a rising probability, that if we don’t get the exit strategy right we could end up with a relapse in growth … a double-dip recession,” he added.
Roubini, a professor at New York University’s Stern School of Business, said he was concerned economies which save a lot, such as China, Japan and Germany, might not boost consumption enough to compensate for any fall in demand from “overspenders” such as the United States and Britain.
This article was posted: Sunday, September 6, 2009 at 10:21 am