Photo: Collected
The ongoing conflict in Ukraine is slowing down the European countries’ economies and some will not be as prosperous as they used to be, said renowned US investor Jim Rogers.
"The Ukraine conflict causes economies to slow down and some countries will not be as prosperous as they have been," Rogers said. "Whenever people have economic problems they blame somebody and that always leads to change."
Rogers said the issues facing the global economy will affect not only Europe but also other parts of the world in the next couple of years.
"There are many countries in Europe that will try to get around the European problems. So there may be more countries that will leave the European Union," Rogers said.
The investor noted that the United Kingdom left the European Union despite some people speculating such a move would destroy its economy, but added he believes other politicians will start "doing the same thing."
Rogers expressed doubt that the European Union would survive given that few blocs have lasted for very long.
"Most of them have broken up. I'm afraid the Euro will break up someday," Rogers said.
In early June, the International Monetary Fund (IMF) said the Eurozone economy was gradually recovering from the coronavirus pandemic measures, the cut in gas supplies from Russia and the consequences of the Ukraine conflict, but the bloc’s aging population and sluggish productivity present risks to growth in the medium term.
The IMF warned that intensifying geopolitical tensions, trade disputes and distortive industrial policy could further complicate economic prospects and the policy making environment for a region highly open to trade.
The collective West stepped up sanctions pressure on Russia after the start of the special military operation in Ukraine in 2022. Russian President Vladimir Putin said that the West's long-term strategy of containing Russia hurts the global economy.
Messenger/Mumu
