قالب وردپرس درنا توس
Home / World / Brexit: Mark Carney warns of no-deal ‘economic shock’

Brexit: Mark Carney warns of no-deal ‘economic shock’



Media playback is not supported on the device

Media caption Mark Carney states that Brexit without agreement would be an economic shock

The governor of the Bank of England Mark Carney urged parliamentarians to solve the impasse of Brexit in a speech of growing threats to the global economy.

He said that a Brexit without agreement would create an "economic shock" at a time when the Chinese economy is slowing down and trade tensions are increasing.

"It is in everyone's interest, probably everywhere" that a Brexit solution is found, he said.

The Bank has already cut its growth forecasts in the United Kingdom, partly because of Brexit problems.

In a speech at the Barbican in London, Mr. Carney said that trade tensions and Brexit are "manifestations of fundamental pressures to reorganize globalization", and that closing the block could undermine global expansion. .

"It is possible that new rules of the path will be developed for a more inclusive and resilient global economy.

" At the same time, there is the risk that countries will turn to the world. internal, weakening growth and prosperity for all. "

  • Brexit" deal dividend "not credible, say parliamentarians
  • The economic growth of the United Kingdom is slower since 201
    2

Brexit has created a" high level of uncertainty, "he said, and" companies are holding back on making important decisions ".

As such, he said it was vital for the UK economy to secure a good deal of withdrawal and a transition.

"A no-deal would be an economic shock for this country, and this would send a global signal on the re-foundation of globalization. It would be unfortunate, "he said.

Global Concerns

Globally, Carney said growth has slowed in" all regions "since 2016 after peaking at 4%.

He said that growth was likely to stabilize, but warned that a further slowdown in China could increase commercial tensions and complacency.

"The Bank of England estimates that a fall of 3% of Chinese GDP can beat 1% on global activity, including half a percent off the GDP of the United Kingdom, the United States and the euro area, "he said.

He added that "a greater 10 percentage point increase in tariffs between the United States and all of its trading partners could take 2.5% for

The governor urged policymakers around the world to address the risks economic rather than ignoring them.

"Even if the economic and financial imbalances in the global economy still do not seem to contain the seeds of their own disappearance, global momentum is softening," said 59022]
Source link