The persisting European Union financial crisis is set to jolt the global economy by the year-end with a major impact on the world’s largest economy USA, a global business leader warned on Thursday.
Talal Abu-Ghazaleh, a global business leader and a visionary, told a select group of journalists that the Italian economy was set to collapse by the year end and would cause damage not only to Europe and other economies but also to the US.
“The persisting financial crisis which started from the US in 2008 is not yet over and I have been quoted saying that it will last at least for 10 years,” Talal Abu-Ghazaleh told reporters at Talal Abu-Ghazaleh University College of Business Campus in Manama.
“Many economists confronted my prediction but now after so many years of economic mess, people started realising the gravity of this vicious cycle which is slowly getting from bad to worse,” he said.
“It was started as a financial crisis but now this is taking shape of being the economic crisis starting from the much anticipated collapse of the Italian economy,” he said.
Italian economy, he said, is one of the largest in Europe and an important country in the world and any adverse development will hit the rest of the world including the United States.
According to him the European crisis is spilling over from one country to another including France and even outside the EU the UK.
“To keep insulate from the impact of the upcoming economic crisis will be very hard even for the UK government it will be very difficult to minimise the damage,” he asserted.