David Cameron warns against new recession
Writing in The Guardian newspaper today, the Prime Minister added that the eurozone’s slowdown has been detrimental to British exports and manufacturing.
Cameron writes: “Red warning lights are flashing on the dashboard of the global economy.
“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 market economies which were the driver of growth in the early stages of the recovery are now slowing down.
“Despite the progress in Bali [trade talks in 2013], global trade talks have stalled while the epidemic of Ebola, conflict in the Middle East and Russia’s illegal actions in Ukraine are all adding a dangerous backdrop of instability and uncertainty.”
In Brisbane the International Monetary Fund managing director Christine Lagarde warned that high debt, low growth and unemployment may become “the new normal in Europe”.
And last week Bank of England Governor Mark Carney said “a spectre is now haunting Europe” due to disappointing economic growth and a lack of confidence.
The UK will see where it stands on the 3 December when the Office of Budget Responsibility produces new growth forecasts and Chancellor George Osborne presents the autumn statement.
The G20 summit was hailed as a “a weekend of achievement” by the Australian prime minister, Tony Abbott, as leaders pledged 800 measures to lift economic growth by an additional 2.1% above current estimates by 2018 compared to 2013.
Such a move would add £1.3 trillion to the global economy, creating millions of jobs.
In the closing press conference Cameron said that he wanted to clamp down on corporate tax avoidance, adding: “This is not some arcane dry and dusty subject.
“The more we can make sure big corporations pay their taxes properly, the less we have to tax hardworking people who I want to make sure can keep more of their own money so they can spend as they choose.”