Fortunado: “Global Ecomomy is Vulnerable and Fragile”

THE DAILY TURKISH-

A senior economist at the United Nations warned about the situation of the global economy by saying, “increasingly vulnerable and fragile.”

“Although it has been ten years since the 2008 Lehman Brothers crisis, it is clear that markets have not taken any lessons yet,” UN Economist Piergiuseppe Fortunato told Anadolu News Agency on Wednesday.

“It is difficult to find the origin of the financial collapse that began in 2007. Over the course of these ten years, there seems to be widespread belief that many structural problems that facilitate the crisis cannot be changed. The regulation series was implemented to reduce the leverage of banks. However, it is clear that it is still not effective.”  said Fortunato, Economic Affairs Officer at the United Nations Conference on Trade and Development.

The economy of the United States

Fortunato showed a recent report by the American National Bank, which was warning of a recession about the current situation in the U.S. economy. “With a contraction gap between short and long-term borrowing costs, the report also warned of the possibility of a recession in the U.S.,” he added, adding that President Trump pointed out the increased risk of protectionism. 

Fortunato said a similar economic crisis is “knocking on the door. “The current economic recovery policies in America are inadequate. These policies have not yet well defined, but we are now seeing an example of a fragile economy. In later years, there may be a more serious crisis than 2008.”

European Economy

Fortunato gave a terrible picture of the European economy.

“If you look at the figures in the European economy, you will face a worse scenario than the United States. Improvement policies in Europe are moving more slowly. [UNCTAD] as noted in last year’s report, the biggest reason for this slow recovery is the economic policy package signed by EU countries, ” he stated.

“There is no expectation of optimism in the long run due to the presence of unattainable political reasons and countries like Italy that support anti-Euro markets.

“Since there has not been a clear political conclusion in Brexit negotiations, this has negatively affected European markets,” he said.

“Every day those Brexit negotiations are not concluded, it is seriously damaging the European economy.”