Stability of oil prices keeps new global economic crisis at bay

17 september 2018 | TVC

Ten years ago, the world was hit hard with a global economic crisis. Back then, Russia managed to weather it out with relatively little pain. Now, a lot of experts are saying we may in fact be witnessing the beginning of a new economic crisis. What sort of crisis will it be and will Russia survive it this time? Leonid Grigoriev, Chief Adviser to Head of the Analytical Center, answered the questions on the Right to Vote show on TV Center.

Leonid Grigoryev
Leonid Grigoryev
Chief Adviser to Head of the Analytical Center

"Between the crises of 1998 and 2008, the economy expanded in leaps and bounds, it was the biggest economic growth in the history of capitalism. And after the 2008 crisis, all the savings were lost," the expert said. According to him, the 2008 crisis came as a complete surprise, nobody had expected it, it was also relatively short and progressed following the V pattern. The 2014 crisis was completely different and followed the L pattern.

"At the moment, nobody is expecting a purely economic crisis, seeing how the previous one only ended about 2 years ago. If you look at the situation in the developed countries, problems have just started piling up there and you can't have a proper big economic crisis without an economic collapse in the USA and Europe," Mr. Grigoriev said. According to him, the USA and the EU economies are currently demonstrating sustained growth. However, there are some external problems: trade wars have begun, involving tariff barriers and retaliatory measures, politics is beginning to dominate the agenda, the expert believes.

"Newly industrialized countries such as Argentina, Brazil, Turkey and Russia are in crisis. This is bad for us but not a big deal for the global economy. What really poses a major threat here is the death spiral of new wars breaking out," the analyst is convinced.

Mr. Grigoriev also noted that the global economic crisis is currently being kept at bay by stable oil prices.

Source: TV Center