The world economy faces a lost decade of low growth even though it is still possible to stave off another global recession, Russia’s finance minister was quoted as saying on Saturday.
“We are probably faced with a lost decade. It is already obvious that growth rates are going to be low,” Alexei Kudrin told Russian reporters on the sidelines of the G20 finance ministers meeting in Washington.
“The fight with a fading of growth is going to take many years, most likely 5-10 years,” added Kudrin, quoted by the Interfax and RIA Novosti news agencies.
Kudrin, one of the world’s longest serving finance ministers who has been in his post since May 2000, said it was not inevitable that there would be a new global recession as in 2008 but the risks had increased.
“The last days have shown that the risks we have talked about are very real and some market indicators have already reached the level of the last crisis in 2008.”
According to Kudrin, one of the differences with the crisis in 2008 is that participants now understood the magnitude of the risks.
“Today we are looking at all the risk zones more seriously and thus the anxiety is probably greater but the crisis itself could turn out to be milder than in 2008,” he added.