The global economy may be hit by a recession in the near future, leading expert at the Institute for Contemporary Development think tank, economist Nikita Maslennikov warned, quoted by Ura.ru.
The global crisis will come next year with a probability of 50%. At the same time, the expert believes it will definitely happen; the only question is how soon. The coronavirus epidemic can accelerate the approaching crisis in the global economy.
If it intensifies in mid-spring, the crisis will hit as soon as at the beginning of next year. However, if the spread of COVID19 is curbed this month, negative trends will not develop before the middle of 2021. Still, there is an about 20% likelihood of a crisis in 2020.
In this regard, the expert recommends Russians should consider buying the things they want before their prices skyrocket. It is essential to buy durable goods and foreign currency. It also makes sense to invest in one’s own health because we might not be able to afford it later on.
“If the new crisis follows the standard scenario – a drop in oil prices followed by a devaluation of the ruble – many products will quickly become more expensive,” economist Dmitry Afanasyev said. “On the other hand, even now, many people do not have enough money to buy durable goods, because economic problems have persisted since 2014 or even before that. In this case the most obvious solution would be using loans, which are likely to evolve into overdue debts if the global crisis does hit.”