David Cameron Global economy battle not over

Prime minister David Cameron says that world leaders must not rest on their laurels, as the global economy is far from safe.

Blue avatar for FOREX.com guest contributors
By :  ,  Financial Analyst

The prime minister of the UK has warned the world that they risk repeating history, six years on from the financial crash, which "brought the world to its knees".

Writing in the Guardian, David Cameron said that "red warning lights are once again flashing on the dashboard of the global economy".

Stock markets around the world responded cautiously to his comments, with many investors still feeling positive following the G20 summit agreement on growth.

Nevertheless, Mr Cameron said that during the meeting of world leaders in Brisbane, Australia, economic problems "were plain to see", hence his concern about the possibility of another major recession.

"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," he outlined in his piece for the Guardian.

"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 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."

However, he went on to say, the UK economy is bucking the trend and expanding at a rate for better than previously expected. The country is the fastest growing nation in the G7 and with an outlook that is markedly better.

Mr Cameron continued by saying that while this may be the case, it is important to keep on track of things as, for example, it needs "to deal with its debts". This is something that cannot simply be overlooked.

"This stability is vital in attracting the business and international investment that delivers growth and jobs, and which keeps long-term interest rates low," the prime minster expanded.

"So we will stick to our plan on the deficit and continue to use monetary policy to support growth without adding to borrowing or debt."

Related tags:

Open an account today

Experience award-winning platforms with fast and secure execution.

Web Trader platform

Our sophisticated web-based platform is packed with features.
Economic Calendar