A hard landing for the Chinese economy is close to inevitable and Russia has only enough reserves to last a couple of years, according to billionaire investor George Soros.
“A hard landing is practically unavoidable,” he told Bloomberg TV from Davos yesterday. “I’m not expecting it, I’m observing it. China can manage it. It has resources and greater latitude in policies, with $3trn in reserves.”
He was altogether less sanguine about Russia, however, which he described as being in “a very, very weak position” and which he believed only had enough reserves to last “for a couple of years.”
China’s slowdown stemmed from over-indebtedness and was inflicting its problems on the rest of the world, and – along with falling oil prices and raw materials – was the root causes of deflation, he said.
Central Bank Chief cancels Davos visit
Head of the Russian Central Bank Elvira Nabiullina yesterday canceled her visit to the World Economic Forum, as the CBR held a crisis meeting with the country’s bankers, who were asking for a return to the use of the discount rateed in the calculation of specifications and to introduce additional emergency measures. The meeting was called a day after Earlier Wednesday, rose to a historic high of RUB 85 and the euro to RUB 93.