David Cameron is painting a grim future for the global economy – one on the brink of another recession. High unemployment rates in Europe, weakening markets in Asia, conflict in the Middle East, the Ebola outbreak in West Africa and the Ukraine conflict all add to the “dangerous backdrop of instability,” the British prime minister wrote in a column published in the Guardian on Monday.
“Six years on from the financial crash that brought the world to its knees, red warning lights are once again flashing on the dashboard of the global economy,” he wrote. “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."
Cameron met with other world leaders, including President Barack Obama and Russian President Vladimir Putin, in Brisbane, Australia, over the weekend for the G20 summit. World leaders discussed, among other things, how to move on from the global financial crisis of 2007-2008, widely considered the worst financial crisis since the Great Depression.
Cameron’s harsh prognosis for the world’s economy included that “the eurozone is teetering on the brink of a possible third recession.” It comes one day after Japan, the world’s third-largest economy, unexpectedly slumped. The country’s gross domestic product fell at an annualized 1.6 percent pace in the third quarter.
Cameron’s decision to issue his warning Monday may have been at least partly motivated by Britain’s own financial troubles, according to the Washington Post. With the next general elections just six months away, Cameron may be trying to plant the expectation early that Britain’s economy may also slip.
However, right now the British economy “is growing,” Cameron said. “After the difficult decisions of recent years, we are the fastest growing in the G7, with record numbers of new businesses, the largest ever annual fall in unemployment, and employment up 1.75 million in four years: more than in the rest of the EU put together,” he wrote.