Two economists confirmed that the global markets are facing many challenges in light of the increasing fears of economic recession as a result of fluctuations in inflation rates and banking failure, pointing to the importance of the influx of capital in the local markets, and the conclusion of more deals to face these economic pressures.
This came during a panel discussion entitled “Prosperity in light of inflation fluctuations and fears of recession” within the work of the Qatar Economic Forum, in cooperation with Bloomberg, which is currently being held in Doha.
In this context, Mr. Rohit Sipahimalani, chief investment officer of the Temasek Group, said: “The tightening of monetary policy globally that we are currently witnessing confirms the impending recession, especially since the inflation rate – which is currently declining – is still high,” adding, “We have to bear these difficult circumstances.” So we can bring this inflation back under control.”
He explained that it is not possible to expect a default in debt repayment, as quick corrective measures can be resorted to if this occurs, expressing his concern about the structure of the global economy in light of the state of tension during the current decade, and its repercussions on projects, economies and the investment environment.
The Chief Investment Officer of Temasek Group indicated that getting out of the (Covid-19) pandemic required a longer time than expected, which was reflected in the level of growth, which we are currently seeking to increase by increasing consumption rates, overcoming the challenges of political risks on the economy, and striving To find cases of balance in this framework, indicating that there are many sectors that will be at risk as a result of the confrontations between the United States of America and China.
He stressed the need to pursue economic policies outside areas of tension, by focusing on issues such as sustainability and solar cells, as well as searching for other economic opportunities in safer regions, such as the Middle East, which is a promising area for investment.
For his part, Mr. Ken Mollis, Founder and CEO of Mollis & Company, said: “The global markets are seeking in various ways to obtain better economies, especially since the banking crisis will have multiple negative repercussions in light of the rapid departure of deposits.”
He pointed to the difficulty of determining how to avoid economic recession in light of the high interest rates, noting that the slowdown in profits indicates the difficulties facing global markets. Mullis pointed to the promising economic opportunities in the Arab Gulf region, which has many factors that make it a unique investment destination, noting that this region has invested a lot in infrastructure as a result of clear sovereign decisions, which made it safe investment areas.
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