This article was last updated on April 16, 2022
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Prime Minister David Cameron has warned over the risk of a fresh global economic disaster that could be looming because of a “dangerous backdrop of instability and uncertainty”.
In a bleak assessment following the two-day G20 Summit conclusion where of international leaders gathered in Brisbane, Mr Cameron has said “red warning lights are once again flashing on the dashboard of the global economy” six years on from the crash that “brought the world to its knees”.
The Conservative leader has referred to a slowdown in emerging markets, the Ebola outbreak and conflicts in the Middle East and Ukraine as the possible contributing scenarios that are leading to an increased instability and uncertainty in the global economy.
The Prime Minister has said: “As I met world leaders at the G20 in Brisbane, the problems were plain to see.
“The eurozone is teetering on the brink of a possible third recession, with high unemployment, falling growth and the real risk of falling prices too.
“Emerging markets, which were the driver of growth in the early stages of the recovery, are now slowing down. Despite the progress in Bali, global trade talks have stalled.”
While indicating that the wider issues in the global economy pose a real risk to Britain’s economic recovery, Mr Cameron has said: “We cannot insulate ourselves completely but we must do all we can to protect ourselves from a global downturn”.
It has been witnessed recently that the growth of the British economy slowed in the third quarter of this year, with gross domestic product (GDP) rising 0.7 per cent between July and September from output in the previous quarter.
The economy had expanded by 0.9 per cent during the second quarter and by 0.7 per cent in the first quarter.
Even after slowing down, U.K. economy still looks more dynamic than the eurozone, where growth is sluggish and deflation poses threat.
The European Commission`s autumn economic forecast highlights that Britain’s output will grow by about 3.1 per cent in year 2014, higher than a previous prediction of 2.7 per cent, then 2.7 per cent in year 2015 and 2.5 per cent in 2016.
That contrasts with 0.8 per cent for the 18-country eurozone, which is lower than an earlier predicted 1.2 per cent.
Previous week, the Bank of England (BoE) had trimmed its forecast for British growth, citing economic strains in the neighbouring eurozone.
It forecast that GDP would expand 2.9 per cent next year, down from a previous estimate of 3.0 per cent.
The BoE still optimistic about a speedy recovery and expects an expansion of 3.5 per cent by the end of this year.
While Labour’s Shadow Chief Secretary to the Treasury Chris Leslie has said that Mr Cameron’s economic recovery plans are useless and most people in the U.K. are worse off under the current government.
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