World economy faces a 'perfect storm'
Dubai, January 30, 2012
The global economy is set for a ‘perfect storm’ and no country will be left untouched by it as the world growth slows further to 3 per cent in 2012, according to a leading economist.
Steen Jakobsen, chief economist at Saxo Bank, said: “Our common theme for this quarter is a Perfect Storm. Pressures in the Eurozone, public sector austerity and social tensions will all conspire to create the storm, in which no nation will be left untouched.”
Jakobsen will be visiting Dubai to discuss with financial media and professional investors of Saxo Bank (Dubai), a wholly owned subsidiary of Saxo Bank, the current market status in light of the recent crisis and the bank’s outlook for the first quarter of 2012.
Saxo Bank’s quarterly outlook takes a deeper look at what 2012 holds for various asset classes including foreign exchange, commodities and equities and the state of the macro economy and how it will be impacted by policy amendments, monetary policy and the current market turmoil.
He believes 2012 could be the most pivotal year by far since the global financial crisis of 2008 and notes that the Middle East and North Africa (Mena) enjoyed good underlying fundamentals, but faced almost imperfect visibility on geopolitical risk.
Jakobsen said: “We feel confident that Mena will stand stronger on both accounts at the end of 2012 but first we may need to go through a period of increased volatility. This leads us to a very defensive investment outlook not from a fear of the future rather from a high probability of seeing better entry levels during the course of the year.”
Jakobsen, a regular guest host and commentator on CNBC, Bloomberg and other networks, has more than 20 years of experience within the fields of proprietary trading and alternative investment. – TradeArabia News Service