Russian Official Spoke about the Factors That Can Provoke a Global Recession
OREANDA-NEWS. Igor Sechin, the former Deputy Prime Minister of Russia and current Executive Chairman of Russian state oil company Rosneft, stated in the speech at the Eurasian Economic Forum in Verona (Italy) that the world economy for the first time in history simultaneously faced three shock factors that could lead to a global recession.
According to him, they are “economic and technological confrontation of the United States and China, trade and tariff wars and currency wars, US sanctions against major oil producers.” At the same time, these factors are observed against the background of a weakening monetary policy and lowering rates by central banks of the largest world economies.
As Sechin recalled, over the past year, global economic and trade growth forecasts had been revised downward by 0.2–0.4 percentage points.
“Further steps to weaken national currencies increase the probability of a global currency war with extremely unpredictable consequences,” he warned.According to the head of Rosneft, unilateral sanctions imposed by the United States negatively affect the global economy and lead to a loss of mutual trust. He also admitted that before the presidential election, Washington administration may take new actions to “make America great.” “The FRS (Federal Reserve System. – Ed.) of the USA announced plans to allocate up to 60 billion dollars a month to purchase US government debt for financing the budget. It will lead to an excessive pouring of dollars into the global economy,” Sechin concluded.