Prominent economist Nouriel Roubini tells Alicia Barry a stagflation crisis will emerge this year as central bankers struggle to curb inflation without crashing their economies. He expects a recession in US, Europe and other advanced economies. Subscribe:

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Nouriel Roubini, an economist who predicted the 2008 financial crisis, has warned of a “perfect storm” of a global recession, stagflation, and a debt crisis in the coming years.

In an interview with ABC News, Roubini stated that the current global economy is heading towards an economic downturn, caused by rising protectionism, policy uncertainty, and a slowdown in China and other emerging markets. He also warned that this could pave the way for stagflation, a period of stagnation and inflation, as rising prices in goods and services will follow a period of slow or no economic growth.

Adding to the problem is the rising level of debt worldwide, particularly in advanced economies such as the US, Japan, and Western Europe. According to Roubini, this could escalate into a debt crisis similar to the one that hit Greece in 2010.

Roubini’s warning comes amid growing concerns over the trade tensions between the US and China, which have escalated in recent months. Both countries have imposed tariffs on each other’s goods, triggering retaliatory measures, which have raised concerns about a global trade war that would destabilize the global economy.

Brexit, the United Kingdom’s decision to leave the European Union, is also causing a lot of uncertainty and instability, with the possibility of a hard Brexit, leading to further market turmoil, which can exacerbate the situation.

In his interview, Roubini also criticized the current economic policies of both the US and China, which he said are “unsustainable,” with the US racking up huge national debt to fuel tax cuts and increased military spending. He further criticized China for its “debt-fueled” growth model, which he said was becoming increasingly unviable.

While Roubini’s warnings may seem alarmist, given his track record, they should not be dismissed lightly. His prediction of the 2008 financial crisis became true. It is essential, therefore, to heed his advice and act accordingly to avoid a catastrophic global recession, stagflation, and debt crisis, which would affect every country and every person worldwide. The time to act is now.