Your feedback is important to us!
We invite all our readers to share with us their views and comments about this article.
Disclaimer: Comments submitted by third parties on this site are the sole responsibility of the individual(s) whose content is submitted. The Daily Star accepts no responsibility for the content of comment(s), including, without limitation, any error, omission or inaccuracy therein. Please note that your email address will NOT appear on the site.
Alert: If you are facing problems with posting comments, please note that you must verify your email with Disqus prior to posting a comment. follow this link to make sure your account meets the requirements. (http://bit.ly/vDisqus)
Known unknowns are growing in a threat to global economic expansion."There is a significant tail risk that's growing for the world economy," said Sinai, chief executive officer of the New York-based consultant. He sees a 10 percent chance of a global recession triggered by escalating tensions between Russia and the U.S. and Europe over Ukraine. U.S. stocks fell the past two days, erasing gains that sent the Standard & Poor's 500 Index to within three points of a record, on worries the situation in Ukraine may escalate after President Barack Obama said the international order is being tested.Seventy percent of 1,403 corporate executives polled by consultants McKinsey & Co. this month cited geopolitical tensions as a risk to global growth in the next year, up from 27 percent in December.The Morgan Stanley economists cited "volatility" from elections as a reason for cutting their forecast for emerging-market growth this year to 4.7 percent from 5 percent.Obama warned Russia on March 25 it would face the consequences of tougher sanctions if it encroaches further into the country.European Union countries rely on Russia for 20 percent of their energy consumption, and their trade exposure to Ukraine and Russia has almost tripled in the past decade.While the U.S. economy is less exposed than Europe to the fallout from the Crimea crisis, American companies with investments in Russia – including General Electric Co. and Boeing Co. – still could suffer if tensions escalate.
FOLLOW THIS ARTICLE