Russian min says new global crisis seen long, affecting labor mkt

MOSCOW, Jun 25 (PRIME) -- A new global crisis can be long and carry the risk of a slower growth and quicker inflation, and it will stem from crumbling added value chains and labor productivity, Russian Economic Development Minister Maxim Oreshkin said during the Valdai Discussion Club on Tuesday.

“The crisis which can come now and its economic troubles will not happen because of capital adequacy of banks or the financial sector issues. It (will be) an unreeling of the globalization ball: a decline of the overall labor efficiency, labor productivity across the globe as the added value chains which used to be the most efficient will increasingly be less efficient,” Oreshkin said.

The minister also said that global economy growth slowed down earlier in 2019 but there is no crisis yet.

He said that a new model of globalization must be based on free access to technologies and education while the industrial subsidies should be revised.

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