Fall of global economy is just a cycle, not a crisis

Jupiter Securities analyst, Nazarry Rosli said the situation is not the beginning to an economic crisis as speculated by some quarters but a cycle correction for the global economy.

He said the fall of the global economy is based on China’s performance as it is currently the world’s second largest economy.

Therefore, he added that this should not cause panic as he characterised the situation as the cycle of economic coordination.

“I look back in terms of China’s development. They have gone through a very rapid development in the past. So this is actually an economic cycle problem.

“Based on what I see now, there is no panic in the market. It is just a cycle and coordination from the economic angle especially when we speak about China,” said Nazarry.

According to Nazarry, China should take initiative and reform its economy to ensure a speedy recovery.

“China should make a reformation and coordination to ensure if there is a fall, it is only temporary before its economy can regain upwards,” he said.

Nazarry also advised the people not to panic and create speculations relating the decline in global economic situation and the decline of the ringgit.

He added that the currency decline is not only faced by Malaysia but other countries as well.

"It's just a global economic cycle. This phenomenon is not confined only to Malaysia. We tend to associate this situation with the fall of the ringgit and the crash of the stock market. The decline of the ringgit and the stock market crash is not only in Malaysia, this phenomenon is affecting the whole world,” said Nazarry.

According Nazarry, the United States is expected to increase its interest rates and this situation must not be feared.

“Everyone knows that the United States will increase its interest rates. This is a normal step for a country to make in order to adjust its economy as a whole.