World could face a second economic crash, UK PM David Cameron warns

Cameron said his government would stick to its plan to cut Britain's budget deficit

London: British Prime Minister David Cameron warned on Monday that the global economy was at risk of slipping back into crisis as the euro zone and emerging economies slow and geopolitical risks rise.

"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," Cameron said in an opinion piece in the Guardian newspaper.

Cameron, facing a national election in May, sought to contrast the situation in many struggling economies with Britain's strong growth over the past year and a half.

As well as the risk of a recession in the euro zone, home to Britain's main trading partners, and the slowing of emerging economies, stalled global trade talks, the Ebola epidemic and conflict in the Middle East and Ukraine made for an uncertain outlook for the world economy, he said.

Cameron said his government would stick to its plan to cut Britain's budget deficit and bring down public debt.

"In six months' time, Britain will face a choice: the long-term plan that has seen it prosper, or the easy answers that would surely have seen it fail," Cameron wrote.

His Conservative party is running slightly behind the opposition Labour party in most opinion polls although Cameron and his team are given much higher marks on economic competence by voters.

Britain's opposition Labour party hit back, saying the prime minister was "making excuses" for a slowdown in growth which is expected in the final months of this year.

"David Cameron should be trying to strengthen growth and make sure working people finally benefit from it, not making excuses for slower growth," lawmaker Chris Leslie, Labour's spokesman on finance, said.

( Source : reuters )
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