Financial experts expect war on Iraq to cause world recession

Financial experts have declared that a war on Iraq will send the world economy again spinning into recession, as the extra burden posed by the spectre of an oil crash will add its effects to an economy already burdened by corporate scandals, a volatile stock market, inflation and unemployment.

Stephen Roach, Chief Economist at Morgan Stanley warned that “This type of (military) intervention and the possibility of an oil crash, however short, should not be taken lightly”. He added that the economic growth relaunched last Spring by the boost given by the US economy may be “neutralised”, because it will not have a cushion of security which protects recovering economies.

Jean-Paul Betbeze, Head Economist at Credit Lyonnais, also warns about the uncertainties hovering over an economic recovery, stating that “a rapid resolution of the Iraqi question would be the lesser of the evils”, although the notion of Saddam Hussein’s regime being toppled by a lightning military strike has few apologists.

Lorenzo Condogno of the Bank of America, is of the opinion that are already feeling the pressures of the spirit of conflict reverberating around the international community.

John ASHTEAD PRAVDA.Ru LONDON UNITED KINGDOM