According To George Soros The Current Global Situation And That Of 2008 Are Similar.
The billionaire Hungarian investor, George Soros said that the current global economic situation is similar to the same situation of 2008. George Soros goes on to say that at this time, investors should be careful on the sectors they invest. He says that most markets all over the world are unstable and some my crumble from the economic downturn. As an investor, he says it would be wiser to look for sectors that are more stable and place your investment in them. He warns that those investors who are not careful enough, they may have their investments caught up in the downfall.
George Soros says on Bloomberg that China’s economic shifts generate the current market crisis. As the country, which is the largest world economy tries to shift its economy from being dependent on the manufacturing and production to the service and consumption sector, its economy faces instabilities. Due the instabilities in China’s economy, it’s currency is devaluing. The effect of this is very severe. The shifts have greatly affected the global markets. In Asia, the stock markets were forced to halt trade in Chinese equities for a day during the year’s first week. This was after the Chinese equities all over Asia encountered a $2.5 trillion loss. Asian countries that were directly trading with China are also facing same problems due to the devaluation of the Yuan.
Europe is also caught up in this economic turmoil. The continent is currently facing numerous problems such as the unstable Euro, the unstable Union, the Ukraine crisis, the Greece debt, the Syrian crisis and the British referendum. On top of this, they are facing the global economic crisis. The economic crisis is predicted to continue affecting the Euro and blowing off any chances that the currency will recover soon. The Ukraine crisis and the current global crisis are the far worse threats that the European Union is facing. George Soros advises the union to focus on solving problems with high urgency levels. This means that the union has to fist address the Ukrainian crisis and late solve the other internal problems to successfully fight the global crisis.
Developing countries are also affected by the Chinese shifts in the economy, and the result is rising interest rates. The interest rates for financial institutions are increasing while the value of their currencies is reducing. In the United States, stock markets all over the world are experiencing instabilities with the Chinese equities. Though the effect is not that big now, it is slowly graduating. George Soros was giving this analysis at the Global Economic Forum that was recently held in Sri Lanka. He was invited to attend the forum as an economic analyst and successful business mogul.