World Economy

Second Global Financial Crisis Looming

Second Global Financial Crisis LoomingSecond Global Financial Crisis Looming

A new global financial crisis is looming, warned David Cameron, Britain’s prime minister.

“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,” the head of the British government says, Itar Tass reported Monday.

“As I met world leaders at the G20 in Brisbane, the problems were plain to see. 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.

“Emerging markets, which were the driver of growth in the early stages of the recovery, are now slowing down.” Cameron told The Guardian.

Among other threats to the global economy, he named stall in global trade talks, the epidemic of Ebola and the conflict in the Middle East.

“Working through the agenda at the G20, it was clearer than ever how vital it is that we stick to our long-term plan at home,” said Cameron, meaning austerity budget and budget deficit cut.

He repeats that he considers policy to support growth by means of adding to borrowing or debt wrong. Cameron states in the article that the economic growth his country had seen proves that the government has been following the right course. But he warns that the British economy can be influenced by negative trends in global economy.