Business minister sees risk of triple-dip recession
December 10, 2012 7:00 AM EST
Business minister Vince Cable said Britain could fall back into recession for a third time since the 2008 financial crisis but expected the economy to stagger on with minimal growth.
In an interview published on Sunday, Cable, one of the most senior ministers in the coalition's junior Lib Dems, said Britain could also face a Japanese-style stagnant "lost decade".
"There is a real worry about (that), a real risk of that," he said. Asked if the economy was heading for a 'triple-dip recession', after falling twice into negative growth since the financial crisis, he said: "There is certainly a risk."
"I always try not to get drawn into forecasting arguments (but) there is clearly a risk. The most likely outcome is that we continue to bump along the bottom," he added in an Observer newspaper interview.
Conservative Chancellor George Osborne announced new official forecasts on Wednesday that slashed expected growth to 1.2 percent in 2013 and 2 percent in 2014, with the economy seen shrinking this year by 0.1 percent.
Cable, a former economist who is responsible for Britain's industrial policy, has long said Britain's economy is starved of demand, but supports the coalition's austerity programme aimed at slashing its budget deficit.
The government hopes that loose monetary policy and record low interest rates will nurture a private sector recovery, but Cable said he hoped the Bank of England's new governor Mark Carney would come up with fresh ways to assist the economy when he takes up the post next summer.
"We have got to have a very expansionary monetary policy, which we have had until quite recently, but I sense the Bank of England is running out of steam, or perhaps motivation. A lot depends on this new governor," he said.
(Reporting by Tim Castle; Editing by Rosalind Russell)
Most Popular Slideshows
- Jeremy Lin, Kobe Bryant Among The Top 5 Overpaid Players In The NBA (Part 1 - Western Conference)
- Reasons Why Michael Jordan Is Better Than LeBron James [PHOTOS And VIDEO]
- Dwyane Wade, Joe Johnson, Amare Stoudemire Among Worst Contracts In The NBA (Part 2 - Eastern Conference)
- Brawl-Marred Game in NFL Week 3: Philadelphia Eagles 37, Washington Redskins 34 [PHOTOS]
Join the Conversation
- Tourre on stand says email in SEC case 'not accurate'
- Syrian authorities blocking access to needy in Homs - Red Cross
- Faith in European Union at low ebb, EU poll says
- Former UBS banker gets 18 months, $1 million fine, for muni bid-rigging scheme
- U.S. judge halts challenges to Detroit's bankruptcy bid
- New Samsung Galaxy Note 4 and Galaxy S5 Android 5.0 L Killer Features, Encryption and More
- Nexus 6, 8 Release Date is Halloween 2014 as Android L Intro Set for October 16
- Moto G 2014 v Asus Zenfone 5 – Specification Comparison Shows Zenfone 5 Is A Good Alternative for Moto G
- Android 5.0 L Nexus 4, Nexus 5, Nexus 7 Release in October, Google Employees Offer Hint
- Nexus 8, Nexus 9 Release Date, Device Name And Price Conundrum: What To Expect?
- New Zealand Could Be Next ISIS Target After Australia Beheading Plot, Says Expert
- Microsoft Doubles OneDrive Space To 30GB Due To iOS 8 Update Issues