{"id":7444,"date":"2019-02-12T15:42:48","date_gmt":"2019-02-12T15:42:48","guid":{"rendered":"http:\/\/www.styledeals.co.uk\/blog\/brexit-mark-carney-warns-of-no-deal-economic-shock\/"},"modified":"2019-02-12T15:42:48","modified_gmt":"2019-02-12T15:42:48","slug":"brexit-mark-carney-warns-of-no-deal-economic-shock","status":"publish","type":"post","link":"https:\/\/www.styledeals.co.uk\/blog\/brexit-mark-carney-warns-of-no-deal-economic-shock\/","title":{"rendered":"Brexit: Mark Carney warns of no-deal &#8216;economic shock&#8217;"},"content":{"rendered":"\n<div property=\"articleBody\">\n<figure class=\"media-with-caption\">\n<div class=\"player-with-placeholder\">\n            <img decoding=\"async\" class=\"media-placeholder player-with-placeholder__image lead-video-placeholder\" src=\"https:\/\/ichef.bbci.co.uk\/images\/ic\/720x405\/p070nsgd.jpg\"\/><\/p>\n<p>Media playback is unsupported on your device<\/p>\n<\/p><\/div><figcaption class=\"media-with-caption__caption\"><span class=\"off-screen\">Media caption<\/span>Mark Carney says no-deal Brexit would be economic shock<\/figcaption><\/figure>\n<p class=\"story-body__introduction\">Bank of England governor Mark Carney has urged MPs to solve the Brexit impasse in a speech warning of growing threats to the global economy. <\/p>\n<p>He said a no-deal Brexit would create an &#8220;economic shock&#8221; at a time when China&#8217;s economy is slowing and trade tensions are rising.<\/p>\n<p>&#8220;It is in the interests of everyone, arguably everywhere&#8221; that a Brexit solution is found, he said. <\/p>\n<p><a href=\"https:\/\/www.bbc.co.uk\/news\/business-47155537\" class=\"story-body__link\">The Bank has already cut its UK growth forecasts<\/a>, partly due to Brexit issues. <\/p>\n<p>In a speech at the Barbican, in London, Mr Carney said trade tensions and Brexit are &#8220;manifestations of fundamental pressures to reorder globalisation&#8221;, and that quitting the bloc could undermine global expansion.<\/p>\n<p>&#8220;It is possible that new rules of the road will be developed for a more inclusive and resilient global economy. <\/p>\n<p>&#8220;At the same time, there is a risk that countries turn inwards, undercutting growth and prosperity for all.&#8221;<\/p>\n<ul class=\"story-body__unordered-list\">\n<li class=\"story-body__list-item\"><a href=\"http:\/\/www.bbc.co.uk\/news\/business-47209369\" class=\"story-body__link\">Brexit &#8216;deal dividend&#8217; not credible, MPs say<\/a><\/li>\n<li class=\"story-body__list-item\"><a href=\"http:\/\/www.bbc.co.uk\/news\/business-47196387\" class=\"story-body__link\">UK economic growth slowest since 2012 <\/a><\/li>\n<\/ul>\n<p>Brexit has created a &#8220;high level of uncertainty&#8221;, he said, and &#8220;companies are holding back on making big decisions&#8221;.<\/p>\n<p>As such, he said it was vital for the UK economy to secure a good withdrawal deal and a smooth transition. <\/p>\n<p>&#8220;A no-deal would be an economic shock for this country, and this would send a signal globally about re-founding globalisation. That would be unfortunate,&#8221; he said.<\/p>\n<h2 class=\"story-body__crosshead\">Global concerns<\/h2>\n<p>At a global level, Mr Carney said that growth had been slowing in &#8220;all regions&#8221; since 2016 after peaking at 4%. <\/p>\n<p>He said that growth was likely to stabilise, but warned that a further slowdown in China, rising trade tensions and complacency could get in the way. <\/p>\n<p>&#8220;The Bank of England estimates that a 3% drop in Chinese GDP would knock 1% off global activity, including half a per cent off each of UK, US and euro area GDP,&#8221; he said.<\/p>\n<p>He added that a &#8220;larger increase in tariffs of 10 percentage points between the US and all of its trading partners could take 2.5% per cent off US output and 1% off global output.&#8221;<\/p>\n<p>The governor urged policymakers everywhere to address economic risks rather than ignore them. <\/p>\n<p>&#8220;Although the economic and financial imbalances in the global economy do not yet appear to contain the seeds of their own demise, global momentum is softening,&#8221; he said.<\/p>\n<\/p><\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/www.bbc.co.uk\/news\/business-47209266\">Source<\/a> by <a href=\"\">[author_name]<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Media playback is unsupported on your device Media captionMark Carney says no-deal Brexit would be economic shock Bank of England governor Mark Carney has urged MPs to solve the Brexit impasse in a speech warning of growing threats to the global economy. He said a no-deal Brexit would create an &#8220;economic shock&#8221; at a time &hellip; <\/p>\n","protected":false},"author":0,"featured_media":7445,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-7444","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general"],"_links":{"self":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/posts\/7444","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=7444"}],"version-history":[{"count":0,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/posts\/7444\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/media\/7445"}],"wp:attachment":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=7444"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=7444"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=7444"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}