Europe News

Deep Problems for West 'Have Not Gone Away': CEO


The deep economic problems facing the western world have not gone away despite the relatively buoyant performance of the markets so far this year, Peter Sands, CEO at Standard Chartered told CNBC.

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Speaking at the World Economic Forum in Davos, Sands said investors should not be lulled into a false sense of security just because the markets had been in a "surprisingly buoyant" mood since the start of the year.

"Some of the deep problems the West is facing haven't gone away at all, they are very real and we should not get too excited about the performance of the markets," Sands said.

He added that despite the global economy facing certain issues these were most protracted in the West.

"What we are seeing in Asia is definitely a slowdown but that in perspective would be seen as fast growth in other parts of the world.

In Africa and the Middle East you are seeing some impact from what's going on in the world but it is still pretty good growth," he added.

A potential Greek default remains on the horizon in Europe despite attempts by the Greek government and its private creditors to thrash out some form of agreement regarding the losses these creditors would be willing to take on their holdings of Greek debt.

The euro zone debt crisis has been the pivotal economic concern for the international community for several months now and looks to be some way from reaching a decisive conclusion.

The International Monetary Fund warned Europe that the size of its bailout fund, the European Financial Stability Facility, needed to be boosted.

Nariman Behravesh, Chief Economist, IHS, told CNBC that Germany did not feel the intense pressure to sort out the debt crisis in the euro zone because its own economy has been doing well.

"I worry that (Germany) does not feel the crisis strongly at home, they don't feel the urgency of this.

What they have put in place solves the next crisis but it doesn't solve this crisis," he said.