Crisis in Middle East reducing global economy growth

The worsening of situation in the Middle East may halt the oil prices decline, which benefits Russia, president of the Anti-Crisis Research Center of Ukraine Yaroslav Zhalilo told Trend Nov.20.

He said that if, on the one hand, the deterioration of situation in Syria is able to stop the trend of falling oil prices, then, on the other hand, the crisis in the Middle East contributes to the weakening of global economic growth.

Syria has been suffering an armed conflict on its soil since March 2011, which, according to the UN, has so far killed over 250,000 people and displaced nearly half of the population. Militants from various armed groups are confronting Syrian government troops. The militants of the extremist groups IS and Jabhat al-Nusra are the most active ones.

The expert also added that the world gradually leaves the “oil era” and dissemination of alternative energy sources objectively reduces demand.

“However, this is already the long term trend,” said Zhalilo. “Actions of the producers can also stop the decline in prices, but they seem not yet ready to do it.”

Commenting on the impact of the migrant crisis on Europe and other countries, the expert said that the situation increases overall economic instability.

He said that pressure on the budgets of the host countries increases, as do the risks and attractiveness for investments falls, consumer and business sentiment deteriorates.

“On the other hand, de facto, some revival is brought to the economic life of developed countries and demand for essential goods increases,” said Zhalilo. “In the future, it may affect the sphere of housing construction. Time will show what kind of trend would be resulting, and the outcome is highly dependent on the ability of the international community, and above all, the EU, to constructively resolve the crisis not only regarding the refugees, but also the IS.”

/By Trend/