UK Chancellor Warns About Eurozone Slowdown to Economy

Chancellor George Osborne has warned that the UK economy will be affected by the slowdown in the eurozone economy.

Talking to the BBC, he said this was a “critical moment for the British economy”, which was not “immune” from what was happening on the continent.

The eurozone economy was stagnant between April and June, with the German economy – Europe’s biggest – shrinking by 0.2%.

Mr Osborne said there were steps the UK could take to protect itself.

“The eurozone risks slipping back into crisis, and Britain cannot be immune from that – it’s already having an impact on our manufacturing and exports,” he said.

Official figures published earlier this week showed that growth in the UK manufacturing sector slowed to 0.1% in August.

“We are not immune from what’s going on in the rest of the world, but we can take steps to protect ourselves,” the chancellor said.

“We must stick with our long-term economic plan, so delivering economic stability. We are cutting business taxes, making the UK a place to invest, and that will protect jobs right here.”

The UK economy has been growing strongly this year, with GDP rising by 0.9% between April and June, following a 0.7% rise in the previous quarter.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza