The next economic crisis in 2020 may begin in the United States and is expected to be worse than the 2008 global financial crisis and will result in increased unemployment, inflation and cost of living, predicts chairman of Talal Abu-Ghazaleh Organization (TAG-Org).
Talal Abu-Ghazaleh believes that Arab countries should be fully prepared for a potential economic crisis and should not entirely rely on the US as a global economic crisis is expected to hit in 2020.
He explained the impact of the next expected crisis on the Arab states, saying it will depend on three factors: their reliance on the US economy, the availability of natural resources such as oil, and the level of productivity in the budget and its percentage to the GDP.
Abu-Ghazaleh advised Arab states to form teams of experts to overcome the crisis.
Signs of the upcoming crisis can be seen in several European countries, such as demonstrations and the difficult conditions Europeans are going through, he explained.
“The international public debt has reached 244 trillion US dollars, which is more than three times the size of the world economy.”
Abu-Ghazaleh explained that the only way for the US administration to overcome the crisis is by meeting with China to discuss trade sanctions and agree on managing the world’s economic matters.
He also called on the Arab states to increase communication with China at the economic, commercial and financial levels as a way to tackle the upcoming economic crises.
TAG-Org is one of the largest groups of professional services firms in the fields of accounting, audit, taxation, education, and training in Arab countries.
It operates out of more than 100 offices worldwide.
