The British economy is facing a “cocktail” of serious threats from a slowing global economy
Chancellor George Osborne said UK faces a “cocktail” of serious threats from a slowing global economy as 2016 shapes up to be one of the toughest since the financial crisis, BBC reported.
The meltdown is Chinese markets besides the tension in the Middle East after the Saudi-Iran tussle, are threatening the British economy. The chancellor’s message will be in contrast to the positive tone of his Autumn Statement, when he said the UK was “growing fast”.
People must not be “complacent” that the economy is fixed, he will say in a speech in Cardiff. On the domestic front, the first interest rate rise since 2007 could come this year.
“Anyone who thinks it’s mission accomplished with the British economy is making a grave mistake,” the chancellor is expected to say. “Last year was the worst for global growth since the [financial] crash and this year opens with a dangerous cocktail of new threats.
“I worry about a creeping complacency in the national debate about our economy. A sense that the hard work at home is complete and that we’re immune from the risks abroad. A sense we can let up, and the good economic news will just keep rolling in.”
Mr Osborne will continue to say that, only seven days into the New Year, “already we’ve had worrying news about stock market falls around the world, the slowdown in China, deep problems in Brazil and in Russia”.
“Commodity prices have fallen very significantly. Oil, which was over $120 a barrel in 2012, now stands at less than $40.
“That is good for consumers and business customers here in Britain, bad news for the oil and gas industry, worrying for the creditors who have lent to it, and a massive problem for the countries that depend on it.
“Meanwhile the political developments in the Middle East, with Saudi Arabia and Iran, concern us all,” he will add.