Cameron Says Second Global Crash Looming – Russian Relations Worsen at G20, Japan in Recession
David Cameron warned last night that the global economy risked another crash and said in an article that ‘red warning lights’ were ‘flashing on the dashboard of the global economy’ and the eurozone was ‘teetering on the brink’ of another recession.
The warning came at the same time that the world’s largest economy, Japan, fell into another recession. Japan shrank by an annualised 1.6% in the third quarter. This followed a huge 7.3% contraction in the previous quarter caused by a rise in the national sales tax and ran counter to economists forecasts for a 2.1 percent rebound.
Mr Cameron’s warning follows a claim by Bank of England governor Mark Carney that a ‘spectre’ of economic stagnation was haunting Europe. Christine Lagarde, managing director of the International Monetary Fund, has also expressed fears that a diet of high debt, low growth and unemployment may yet become ‘the new normal in Europe’.