7th January 2016
Following George Osborne’s upbeat Autumn Statement when he declared that the UK was “growing fast”, the Chancellor is now expected to significantly temper his positivity later today.
In a speech at Cardiff on Thursday, Osborne is expected to say that Britain presently faces a “dangerous cocktail” of threats.
The UK may well have been the swiftest growing economy amongst its peers but it is anticipated that the chancellor will highlight a number of headwinds including Middle East tensions, easing growth in China and low commodity prices, BBC News reports.
Osborne reportedly believes that anyone who thinks it’s “mission accomplished” with the British economy is making a grave mistake.
He 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.
“We are only seven days into the New Year, and already we’ve had worrying news about stock market falls around the world, the slowdown in China, deep problems in Brazil and in Russia.”
It is predicted that he will also cover the steep decline in commodity prices, where for example oil, which was over $120 a barrel in 2012, now trades at less than $40.
He is expected to add: “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.”