Source: The Star
BOLD world leadership seems in very short supply right now. Global alarm bells are ringing, recession risks are rising and a deepening sense of doom and gloom is spreading into markets.
The US trade war with China, the shock of a hard Brexit in Europe and growing political tensions in the Gulf could add up to a perfect storm. Perceptions are building that the next phase of the 2008 crash is about to play out, with little to stop it.
However, while there might be a myriad of risks, the situation is not beyond redemption. All it needs is a breakthrough of common purpose, more forceful policy prescriptions and much bolder political leadership to change course. There are still grounds for optimism.
In theory, there should be little fundamentally wrong with the global economy now. Lots of policy stimulus is already at work in the system and global recovery has had a good run for its money in the past 10 years. There is a timing issue though.
Business is always ebbing and flowing in cycles and global activity just happens to be ebbing now, but the slowdown is being aggravated by simmering geopolitical tensions and nations at loggerheads. No wonder global confidence is diving, consumer and business optimism is in retreat and markets look vulnerable.
The Star, September 24, 2019