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UK Prime Minister: The world will enter a recession

Wednesday, October 22, 2008

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Gordon Brown: A recession is coming
Image: International Monetary Fund.

Gordon Brown, the Prime Minister of the United Kingdom has today admitted that the developed world will enter a recession.

"Having taken action on the banking system, we must now take action on the global financial recession," he said, speaking to Members of Parliament (MPs). "[There will be a] recession in America, France, Italy, Germany, Japan and - because no country can insulate itself from it - Britain too," he continued.

These comments echo those made recently by Mervyn King, governor of the Bank of England.

Leader of the opposition David Cameron said that Brown should take some of the blame for the crisis. "He claimed the credit in the boom, why won't he take responsibility in the bust?"

Sushil Wadhwani, who was formerly a member of the Bank of England's monetary policy committee also reacted to these recent comments. "The committee has been too slow to acknowledge the risks of a recession and they have fallen behind the curve," he said. "The consequence of their relative inactivity so far is that the recession is likely to be deeper and more prolonged than was necessary."

Markets today continued to fall dramatically. As of 15:30 UTC, the FTSE 100 index had fallen by 152.18 point to a value of 4077.55, while the Dow Jones Industrial Average fell back below 9,000 with a 2.89% drop.

Market data

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Are we entering a recession?
12:00, 20 December, 2024 (UTC)
  • Nasdaq
    		•  19372.77 Loss -19.93 Loss -0.10%
  • S&P 500
    		•  5867.08 Loss -5.08 Loss -0.09%
  • Bovespa
    		•  121187.91 Profit 416.02 Profit 0.34%
  • FTSE 100
    		•  8032.53 Loss -72.79 Loss -0.90%
  • DAX
    		•  19682.86 Loss -287.00 Loss -1.44%
  • SMI
    		•  11289.09 Loss -125.75 Loss -1.10%
  • AEX
    		•  867.02 Loss -11.81 Loss -1.34%
  • BEL20
    		•  4153.07 Loss -51.50 Loss -1.22%
  • IBEX 35
    		•  11337.30 Loss -102.60 Loss -0.90%
  • All Ordinaries
    		•  8316.70 Loss -98.30 Loss -1.17%
  • Nikkei
    		•  38701.90 Loss -111.68 Loss -0.29%
  • Hang Seng
    		•  19720.70 Loss -31.81 Loss -0.16%

    Sources


     

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      This page is archived, and is no longer publicly editable.
    Articles presented on Wikinews reflect the specific time at which they were written and published, and do not attempt to encompass events or knowledge which occur or become known after their publication.

    Got a correction? Add the template {{editprotected}} to the talk page along with your corrections, and it will be brought to the attention of the administrators.

    Please note that due to our archival policy, we will not alter or update the content of articles that are archived, but will only accept requests to make grammatical and formatting corrections.

    Note that some listed sources or external links may no longer be available online due to age.

    The text of this article is licensed under the terms of the Creative Commons Attribution 2.5 License


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