Nouriel Roubini, the economist who famously predicted the financial crisis, said he is sticking to his view that the global economy is on course for a “perfect storm” next year.
Nouriel Roubini said the equity markets could face a sharp correction next year, with little the Federal Reserve can do to stop it.
By Angela Monaghan, Economics Correspondent
Mr Roubini, the New York University professor dubbed “Dr Doom”, said a number of unpleasant factors would combine to derail the global economy in 2013, including an escalation of the eurozone crisis.
Other factors included further tax increases and spending cuts in the US that may drive the world’s largest economy into recession; a hard landing for China’s economy; a further slowdown in emerging markets; and war with Iran.
“Next year is the time when the can becomes too big to kick it down [the road]…then we have a global perfect storm,” he told Reuters.