Rubenstein: Three major risks to the global economy in 2019

Three major risks face the world economy in the coming year, according to David Rubenstein, co-founder and co-executive chairman of US private equity giant Carlyle Group.

Rubenstein said the most significant global risks for 2019 are the partial US government shutdown, Brexit and the US-China trade war.

Solving these issues would greatly improve the global economy, he added in an interview with Al Arabiya on the sidelines of the World Economic Forum at Davos.

“I do not think we are heading towards a global recession. We are heading for a global slowdown that can be minimized and improved if we solve these (three) issues.”

Rubenstein expected the US government shutdown to come to a conclusion soon, and with regards to China-US trade relations he said, “I think there will be a trade deal between China and the United States within a few months.”

He was, however, less hopeful about Brexit. “I think Brexit, will linger for a while because I don’t see an easy answer other than a revote.”

US President Donald Trump signed a stopgap bill on Friday night that will reopen parts of the government that were affected by the partial shutdown.

On the other hand, Rubenstein ruled out that the financial markets will rise significantly this year, considering that the current stock prices are reasonable and that the performance of the markets will depend on the China-US talks and on the outcome of Brexit.

In terms of currencies, Rubenstein said 2019 would also be “the year of the dollar” and that the strength of the dollar will continue.

Last Update: Wednesday, 20 May 2020 KSA 09:58 - GMT 06:58