Speaking at the 2011 Mipim real estate conference, Dr Roubini gave his forecast on the global economy and real estate market. His speech was on the whole measured, being both pessimistic and optimistic. However when a question from the audience asked about his opinions on the future of the Russian economy he was more critical.
He pointed out that in Russia there is a cyclical element to the economy that is dependent on oil prices. He added that when global markets recovered, Russia had lagged behind its BRIC counterparts, something he believes points to structural problems of the country’s economy.
Dr Roubini said: “There are some worrying things about the Russian economy and some fundamental constraints to it. The economy is not diversified and it’s attitude to FDI is not friendly. This is not to say that it can’t succeed, but it needs to do something about the cyclical component of its economy.”
Known as the economist who predicted the credit crisis, Dr Roubini largely stuck to his “glass half full, glass half empty” concept that he spoke of at the World Economic Forum in Davos. He expressed several concerns about the US economy and rising commodity prices, but he was also encouraged by signs coming from emerging markets and corporate balance sheets.