Stephen Roach sees rebound in Japan, but says it won't last

Global turbulences have been playing havoc on markets world over. Rising crude oil prices, sovereign debt issues in Europe, problems in the Middle East, and the latest earthquake and nuclear destruction in Japan, all are worrisome developments and would impact the global economy that is just coming out of the worst recession since 1930s, says Stephen Roach of Morgan Stanley.

Expressing deep concerns with regards to the devastation in Japan, he says, the economy there has been growing at an average of less than 1% a year for more than 20 years. "So the paralysis is much more concentrated than the footage you see right now. There are some rolling outages and production disruptions throughout the manufacturing sector in Japan," he adds. Though there will be a rebuilding rebound once the devastation is cleared and construction starts, Roach feels this too shall not last. "As we saw after the Kobe earthquake in 1995, these rebuilding effects don