Green policies in the USA and the European Union hinder the competitiveness of certain economies. There is such a regularity: the European Union regulates, China wins.
This is what the economist and founder of the Institute for Market Economy Krasen Stanchev told "Focus".
According to him, there are no prerequisites for falling into a recession and a global economic crisis similar to that of 2008-2009. Setting unrealistic goals related to costs and loss of competitive positions inevitably leads to losses for economies, added Stanchev .
He explained that the reasons for the tremors in the world markets in the past week were different. The election campaign in the US affects the prices of stocks and bonds. At the same time, the sales management index remained relatively constant, the economist explained. For the last two quarters, there is no significant decline.
Krasen Stanchev does not expect drastic changes in the Federal Reserve's policy regarding interest rates before the US elections. "Generally speaking, central banks everywhere, no matter how independent they think they are, comply with what governments do,”, he commented.
The reason for the huge drop in the Japanese stock exchange is the high government debt, which is about three times higher than the country's GDP, the economist explained. "The commonality between Tokyo and the rest of the markets is that there is a certain correction of the optimism that there was in the world economy about information and communication technologies and artificial intelligence. Some companies in no time reached such levels of capitalization, which obviously cannot be compensated by the income of the investors", explained Stanchev.
Interest rates in Bulgaria are two to three times lower than in the European Union and the Eurozone, the economist pointed out. "This leads to an awful lot of accumulated reserves. The savings are big because people prefer more reasonable management of their budgets, he explained.
77% of the enterprises' investments in the period 2020-2022, according to BNB data, are costs for the purchase of future supplies. "I mean that which would allow companies to operate in a situation of relatively high price levels and difficult price predictability. Right now, what businesses are doing is retrofitting what they could produce. This is a somewhat natural and correct policy on the part of the real sector", commented the economist.