Date Published: 
04/04/2011

Here is a list of developing stories that may lead to a global economic meltdown. They range from the financial, to the macroeconomic, to the geopolitical. And they all have potential wide ranging effects, each in its own way:
•    Skyrocketing commodity prices
•    China in the following dimensions:
•    Revolution winds – a spillover from the Arab world
•    China's tightening programme may impact global recovery
•    Middle East revolutions may lead to wars, long term instability and energy crisis (Iran, Saudi Arabia and others)
•    USA in the following dimensions:
•    Federal debt
•    Inflation / deflation in the US
•    Europe zone:
•    Belgium debt, as the country is approximately 300 days without government
•    EU members struggling under debt: Portugal, Spain, Greece
•    Ireland to leave the union following the corporate tax crisis

 

Risk Management Perspective: 

As we all witnessed in 2008, the macroeconomic environment can impact substantially business around the globe. Whether if it is affecting demand, liquidity, regulation, etc. all businesses should, with modest effort, be ready and should have a plan to deal with the circumstances that might affect them.

Industry Group: 
Other
Industry: 
Other
Country: 
Rest of World
Risk Class: 
Financial
Risk Type: 
Economic Conditions

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