GIC says world could be facing worst recession in 30 years

[Garlic]

Source: http://www.channelnewsasia.com/stories/sin.../342691/1/.html

 

 

By Ng Baoying, Channel NewsAsia | Posted: 21 April 2008 1311 hrs

 

 

SINGAPORE: The world could be facing its worst recession in 30 years, said Deputy Chairman and Executive Director of the Government of Singapore Investment Corp (GIC) Dr Tony Tan.

 

He shared this view with over 500 GIC staff at a conference on Monday.

 

"The financial contagion has now spread beyond US shores, increasing the likelihood of a global financial crisis and recession. We could be facing a recession which is longer, deeper and wider than any recession that we have encountered in the last 30 years," he said.

 

Dr Tan added that this could be mitigated if timely actions are taken by policymakers around the world, boosting both markets and investor sentiment.

 

If this does not happen within the next three to four months, it will be up to the markets to work out current problems, and this is expected to be a long, painful and drawn-out process.

 

He said: "What is clear is that the financial and investment markets will be extremely nervous and volatile over the next one or two years."

 

While that means GIC's multi-billion-dollar investments in UBS and Citigroup remain shaky in the short term, Dr Tan pointed out that these are long-term investments and they are expected to give good returns when markets stabilise and economic conditions return to normal levels.

 

GIC invested US$10.8 billion in UBS in December last year and US$6.88 billion in Citigroup this January.

 

At the staff conference, GIC also unveiled three new group committees

[Apollo]

i see ur avatar more scared than the story... anyway has been posted.

 

duh...