Keynote speaker and economist, Linda Yueh has given her predictions for the year ahead as part of the annual BBC Correspondents’ Look Ahead Programme.
Linda believes that there will be ‘no ripples at all across global markets in the aftermath of the Fed "taper" where cheap cash injections are trimmed back and eventually ends probably next year.’ She also points out that Brazil, Turkey, South Africa, Indonesia and Turkey, known as the fragile five, all have elections taking place in 2014; Linda predicts that these elections will go smoothly and there will be no surprise victories.
Linda has a very positive outlook about the year ahead and stated that ‘growth will go back to normal rates, incomes will rise strongly, and unemployed youth all find work. The process will be much more gradual.’
Linda believes that one of the main problems that will occur in 2014 is that the young unemployed who are experiencing joblessness will be ‘scarred in terms of employment prospects. A spell of unemployment can affect lifetime earnings.’
The one to watch in 2014, according to Linda will be the German Chancellor, Angela Merkel as she will have a huge influence in shaping the Euro zone. Linda will also be waiting to see if President Xi Jinping and Premier Li Keqiang deliver in 2014, she stated ‘Expectations are high for wide-ranging reforms…The trouble is for high expectations is that when they disappoint, then the repercussions could be hard to predict.’
Linda’s last prediction for the world economy is ‘that the global implications of a crisis in the world's second largest economy will be another Lehman.’
Copyright Speakers Corner 2017