Brown expresses oil price fears

09/07/2009

The UK economy could get much worse over the next few months, Gordon Brown reports.

In an interview with the Reuters news agency, the prime minister said that hopes that the economy was now showing "green shoots" did not mean that recovery was now here to stay.

High oil prices, which increase costs for businesses around the world, were seen as a particular danger to future growth.

The UK is already facing its worst recession in decades, caused by the credit crunch.

Overall output - the way in which officials measure how well the economy is doing - shrank by 2.4 per cent over January-March.

Meanwhile, unemployment has risen to 7.2 per cent, its worst in 12 years.

"This is a second wake-up call for us," Mr Brown.

"We have to deal with the challenge of resuming growth in the world economy. Banks must lend [and] we must keep commodity prices that are at a level that enables growth."

The prime minister is to meet with other heads of state today at the G8 summit in Italy.

Tags; Current UK Economy, Young Family Finances, Retirement Money Problems, Recent Graduate Debt,

• Share
• 
• 
• Store
• 
• Follow
•