In late December, economist Nouriel Roubini warned that 2022 would “be much more difficult than 2021.” He predicted that “the surge of inflation would not be merely temporary” and that “looming geopolitical risks were becoming more acute.”
At the top of this list of risks was Russian President Vladimir Putin’s buildup of troops near the Ukrainian border.
With Russia’s invasion of its neighbor this week, “We now must consider the economic and financial consequences of this historic development,” according to an op-ed posted Friday by Roubini, chief economist at Atlas Capital Team and CEO of Roubini Macro Associates, for Project Syndicate.
Within the context of China, Russia, Iran and North Korea challenging U.S. global dominance, the world has “entered a geopolitical depression that will have massive economic and financial consequences well beyond Ukraine,” he said.
Overall, Roubini — who’s earned the nickname “Dr. Doom” for his often pessimistic predictions — sees a military conflict, or “hot war,” between the major powers as more likely over the next decade. Plus, the escalating cold war between the U.S. and China should make Taiwan more of a “potential flashpoint.”
Here are six risks Roubini sees ahead in light of Russia’s invasion of Ukraine this week: