Skycrapers and economic crashes linked: research

Reported by ninemsn staff
Thursday, January 12, 2012

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A British bank has uncovered an "unhealthy correlation" between the building of skyscrapers and subsequent financial collapses in major cities.

PHOTOS: World's tallest buildings

New research by Barclays Capital cites examples including the Empire State building, built as the Great Depression was underway, and even the world's current tallest tower, the Burj Khalifa, built just before Dubai almost went bust the BBC reported.

"Often the world's tallest buildings are simply the edifice of a broader skyscraper building boom, reflecting a widespread misallocation of capital and an impending economic correction," Barclays Capital analysts told the BBC.

The firm noted the world's first skyscraper, New York's Equitable Life building built in 1873, coincided with a five-year recession before being demolished in 1912.

Malaysia's Petronas Tower coincided with the 1997 Asian financial crisis and Chicago's Willis Tower (formerly Sears Tower), built in 1974, preceded the oil crisis, the study said.

The research has raised questions about China, currently the largest builder of skyscrapers in the world with 53 per cent of all the tall buildings in the world.

India is also one of the largest builders of skyscrapers with 14 projects currently underway.

17/05/2012 10:15Sydney, Australia. 17 May,2012
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