About the Economic Uncertainty that will come from the conflict between israel and hamas as the death toll continues to rise. The bbc s economics editor faisal islam sat down Pierre Olivier gourinchas and asked if the Global Economy is heading in the right direction. Well, things are going in the right direction. What were seeing is despite these large shocks that you describe, the World Economy is still standing. No global recession, no massive slowdown that would put us into, you know, huge unemployment rates. We havent seen that. Weve seen a surge in inflation. But inflation is sort of coming down now, both Headline Inflation and core inflation. So thats the good news. Things are improving. The Global Economy has been resilient. At the same time, the Growth Numbers we have around 3 for this year, 2. 9 for next year this is way below historical average. So the Global Economy is limping along. Its not sprinting, but its been resilient. Right. Do you from this point see. There are area
Many customers across the globe will subdue white house has chosen to turn a blind eye, especially over the last year or two years, because it has been trying to smooth relations between iran and the western world, but now if the white house decides to enforce those sanctions, that would mean that the supply from iran would be cut off and this would come at a time when oil supplies have been tightening because saudi arabia and russia, the two largest exporters of oil in the world, also part of opec plus can have collectively been producing Oil Production by 1. 3 Million Barrels by day since july and will continue doing it until the end of year. There is a good chance it may continue into the next year as well for so this happens, there will be a scenario where there will be lesser oil supply, a scenario where there will be lesser oilsupply, more a scenario where there will be lesser oil supply, more demand and that would lead to higher prices. And that would lead to higher rices. . ,.
Oil prices in this case. I think the real impact would be how High Oil Prices would be sustained because of the geopolitical risk. Clearly there economic impact, the real issue will be the impact with inflation. Its too early to put an assessment there, but short term, High Oil Prices would drive Financial Markets in the next few days. In the next few days. What is our in the next few days. What is your sense. In the next few days. What is your sense, are in the next few days. What is your sense, are we in the next few days. What is your sense, are we seeing i in the next few days. What is| your sense, are we seeing an increased interest in safe havens like gold and the us dollar . I havens like gold and the us dollar . ~ , dollar . I think in this environment, dollar . I think in this environment, of dollar . I think in this. Environment, of course, dollar . I think in this environment, of course, the dollar would actually do well, given that Interest Rates are extremely high in the u
Good to see you. The question is, what has gone wrong here . This is a similar situation to the midland bank and its situation some 30 years ago. Bank and its situation some 30 years a. O. Bank and its situation some 30 years ao,. ,. ,. , bank and its situation some 30 years 80. ,. , [iii bank and its situation some 30 years ao. , [iii ,. , bank and its situation some 30 years ao,. , xii,. ,. , ago. Yeah, about 30 years ago midland bank ago. Yeah, about 30 years ago midland bank was ago. Yeah, about 30 years ago midland bank was a ago. Yeah, about 30 years ago midland bank was a bank ago. Yeah, about 30 years ago midland bank was a bank that l ago. Yeah, about 30 years ago i midland bank was a bank that had very little capital, was barely making any money and because it didnt have much in the way of capital or money it was finding it difficult to make any money. I was involved in a project at the time to try to help it to make as good use as a good of the little Capital Letter got in o