Knock Mohamed El-Erian, Chief Economic Adviser at Allianz The alarm regarding the state of the global economy, saying the “story” behind the concern is the IMF’s phrase “the worst is yet to come” and emphasizing his agreement in visions with the Fund, and that there is now a risk to financial stability.
“I’ve worked there for 15 years, and to say we choose our words very carefully,” El-Erian said. “If there is nothing left in words but that the worst is yet to come, it is worrying for us.” They tell us that growth is slowing down too fast, and that many countries are in danger of slipping into recession.
El-Erian also referred to inflation, which has become closely related to the economy, according to the economic growth prospects report issued by the International Monetary Fund, as it is no longer declining as quickly as economists would like.
He added that there are risks to financial stability – the idea that markets may not work the way we want them to. This all leads to what is known as the “Perfect Storm”. And if we are not careful, this might be a major economic damage to livelihoods.
