The UK faces a “dangerous cocktail” of new economic threats that could hit growth in 2016, George Osborne is to warn.
In a speech later today, the Chancellor will set out the key factors weighing against global growth this year, the BBC reports.
He will say: “Anyone who thinks it’s mission accomplished with the British economy is making a grave mistake.
“Last year was the worst for global growth since the [financial] crash and this year opens with a dangerous cocktail of new threats.”
In particular, Osborne will cite “worrying news about stock market falls around the world, the slowdown in China, deep problems in Brazil and in Russia”.
He will add: “Commodity prices have fallen very significantly. Oil, which was over $120 a barrel in 2012, now stands at less than $40.
“That is good for consumers and business customers here in Britain, bad news for the oil and gas industry, worrying for the creditors who have lent to it, and a massive problem for the countries that depend on it.
“Meanwhile the political developments in the Middle East, with Saudi Arabia and Iran, concern us all.”
His comments come as the Chinese stock market was shut down after just 870 seconds of trading overnight as the so-called “circuit breaker” mechanism kicked in for the second time in a week.
The circuit breaker, introduced on Monday, automatically closes trading for the day if markets fall by 7 per cent.