The world economy is experiencing an alarming state of calm before a potentially violent storm. The IMF has warned of significant stability risks associated with the economic slowdown in China and the crisis in the emerging markets, the newspaper reported.
“We are witnessing a classic emerging markets’ crisis, which is [currently] forming,” the article said.
According to the newspaper, all signs of the crisis are present: economic downturn and decrease in exports, rising fiscal deficits, rapidly increasing debts as well as decrease and reversal of capital inflows.
The emerging markets crisis may assume even larger dimensions than previous crises of this kind. The recent collapse of oil prices is historical and comparable only to that of the early 1980s.
Full article: Calm Before the Storm: Germany Should Prepare for Severe Export Crisis (Sputnik News)