SINGAPORE: Government of Singapore Investment Corporation (GIC) Deputy Chairman Tony Tan said on Monday a major financial and economic crisis could erupt if U.S. bonds loses its triple A credit rating in a disorderly manner, while significant structural problems still plague the global economy.
He said although the global financial crisis is over and the economic outlook for this year is “more robust” than in the last few years, “the future economic and investment environment appears unusually uncertain.
Dr Tan said emerging economies still face risks of inflation and asset price bubbles.
And the risk of endemic sovereign debt crisis in the euro zone remains, as do major structural problems including high debt levels in major economies, global imbalances, and high unemployment in the U.S. and Europe.
Dr Tan was speaking at a conference organised by the investment fund to mark its 30th anniversary.