Azerbaijan, Baku, Aug.9 / Trend, A. Badalova /
The world economy may fall into another recession after the recent drop in the U.S. credit rating by Standard & Poor's Agency. Leading analysts of the British economic research and consulting company Capital Economics conclude that such developments are a worst-case scenario for the world economy.
"Of course, the lowered rating occurred at a time when financial markets and advanced economies have been very fragile. Excessive uncertainty can easily contribute to further declines in stock prices. In the worst-case scenario, this could be the impetus for the next financial crisis that will lead to another recession in the U.S. and Western countries", says the Capital Economics analysts' report received via email by Trend.
Last week, the international rating agency Standard & Poor's downgraded the U.S. credit rating for the first time, dropping from the maximum rate of "AAA" to "AA+", with problems of hitting the government debt ceiling currently in the foreground.
The downgrade caused a series of reactions both in the stock and commodities markets. On the first day of trading, stock indexes fell in Asia and the Middle East, world market oil prices decreased significantly, while gold prices set a new historic record, exceeding $1,700 per ounce.
Nevertheless, according to Capital Economics analysts' expectations, all negative reactions to the markets caused by the downgrade will be temporary.
According to the British analysts, the loss of the U.S. "AAA" rating is a clear sign that the world financial crisis will be felt for many years.
According to U.S. Energy Security Analysis, Inc. (ESAI) Head of the Oil Markets Department Rick Mueller, lowering the U.S. credit rating will have serious consequences for the world economy.
As Mueller told Trend, treasury bonds serve as the main financial instrument throughout the world, and so any doubts about their solvency would be very negative for economic growth, especially when the economy remains relatively fragile after the 2008-2009 recession.