At the World Economic Forum in Davos, Switzerland, business leaders have been expressing their thoughts as Brent slides below $30 a barrel. Oil’s slump to a 12-year low is ripping through markets. Business leaders and economists disagree among themselves that 2016 will be another 2008 – global economic meltdown. Oil prices are too volatile to be predicted. As one of the panels said “Oil prices are so volatile. You just don’t know if the oil price will be 20$ or 100$ if you are looking in the next 2-3 years”.
China’s sluggish growth, volatile oil price and US political situation are all together driving the global economy down and make investors very conservative when planning their budgets for 2016. Political uncertainly is one of key risks that drive global growth which is about to slow down in the years to come.