David Cameron has issued a stark warning that “red warning lights are flashing on the dashboard of the global economy.” Writing in the Guardian newspaper following the G20 summit in Brisbane Cameron confirmed there are considerable headwinds facing the global economy that represent a high level of risk to British economy. Cameron added that the slowdown in the Euro Zone is already impacting British exports.
The PM’s warning came only days after Bank of England Governor Mark Carney said. “A spectre of stagnation was haunting Europe.” The warning comes at a time when data suggests the Euro Zone is on the brink of a third recession and emerging market economies begin to slow.
Only last week Germany reported its economy expanded by a mere 0.1% in the third quarter. More worryingly the Bank of Japan has just confirmed the world’s third largest economy is now in recession following two quarters of negative growth. The Japanese economy contracted by 0.4% in the third quarter.
The G20 leaders signed over 800 measures designed to lift economic growth by a further 2.1%. If boosting growth was that easy surely these measures would already have been implemented.
According to the Guardian the average British worker is £1,600 a year poorer since Cameron took office.