In the first few weeks of 2016 the Chinese economy has seen around $2.5 trillion wiped from its value, which has prompted hedge fund manager George Soros to warn of global conditions mirroring those leading to the 2008 economic meltdown. Bloomberg Business reports Soros made his prediction of more volatile global markets during an interview at an economic summit in Colombo, Sri Lanka. The issues seen within the Chinese economy are the major concern for Soros as he feels the changing nature of the financial future of the Chinese could make it difficult for the economy to continue its rapid growth into the future.
George Soros has not only focused in on the problems in China, but is also warning on Bloomberg of the crisis in Europe with debt laden nations, and an increasing migrant problem speeding the descent into a global economic meltdown. Problems in Greece with unmanageable levels of debt have been a major issue for Soros as he monitors the situation across Europe, but the hedge fund manager with an estimated personal wealth of over $23 billion also sees the Ukraine as a growing problem. George Soros believes a failing economy in the Ukraine could lead to a major issue with Russia forcing itself into the mainland of Europe. The continued criticism of Russia and President Vladimir Putin by George Soros recently saw the Open Society Foundations charity operated by Soros banned from Russia as students burned the books of the man who caused the 1992 devaluation of the British Pound.
Despite the problems Soros sees in Europe he still believes the Chinese economy holds the key to the economy of the world. The growth of China in the latter half of the 20th century and the early years of the 21st century was based upon an economy strong in manufacturing and investment opportunities, but Soros warns the shift towards a service based economy is damaging the Chinese Yuan and destabilizing the global economy. As volatile markets become more commonly seen in the coming years the global economy will struggle to cope with billions of dollars pushed into the Chinese economy in a bid to keep it growing at a speedy pace.