24/Apr/2014 - Last News Update: 10:00

Bank governor Sir Mervyn King warns of hard times

Category: Business

Published: 28th Nov 2011 17:10:56

UK economic growth will be "flat or close to zero" over the next six months, Bank of England governor Sir Mervyn King has told MPs.

He told the Treasury Select Committee: "The outlook for output growth in the near term is considerably weaker than even three months ago."

Sir Mervyn's comments came on the day that the OECD warned that the eurozone and UK could be entering a recession.

Asked about the OECD report, Sir Mervyn said he had not yet read it.

As with the OECD's analysis, Sir Mervyn blamed the eurozone's debt crisis for contributing to the UK's economic problems.

He said there could be a particular impact on export growth.

"I think it is very hard to give a worst-case scenario from that (eurozone impact). Many things could happen and an awful lot will depend on the politics of it.

"What I would say more generally is that what we are facing is a situation in which some painful adjustments need to be made.

"And those painful adjustments will need to be made both for creditors and debtor countries, and those painful adjustments will need to be made irrespective of how the euro crisis plays out and so there is no easy way out of this," Sir Mervyn said.

Even if the eurozone crisis was resolved any time soon, it was Sir Mervyn's prediction that UK growth for the whole of next year would not be "rapid".

He did, however, repeat his belief, that factors that had led to the UK's sharp rise in inflation this year "are diminishing".

Source:
BBC News External Link Show Citation

Latest News

Harvard Citation

BBC News, 2011. Bank governor Sir Mervyn King warns of hard times [Online] (Updated 28th Nov 2011)
Available at: http://www.ukwirednews.com/news/206091/Bank-governor-Sir-Mervyn-King-warns-of-hard-times [Accessed 24th Apr 2014]

News In Other Categories

  • Barclays bonus plans face mounting opposition

    Barclays' shareholders are gathering for the bank's annual general meeting in London as anger rises over its plans to pay higher bonuses.
  • Quentin Tarantino: Judge dismisses Gawker legal case

    A judge in the US has dismissed Quentin Tarantino's case against gossip website Gawker, who he claimed helped leak his screenplay The Hateful Eight.
  • Widnes Vikings: Liam Carberry awarded new one-year contract

    Hooker Liam Carberry has signed a 12-month extension to his contract with Super League club Widnes Vikings.
  • The Shetland Dividend

    Shetland has no intention of playing its oil card and pushing for its own independence, the council leader has told me.
  • Qualcomm shares dip on weak outlook

    Shares in Qualcomm, one of the world's biggest chipmakers, fell 5% in after hours trading as it issued a weaker than expected growth outlook.
  • Bristol Academy extends reach overseas with first foreign students

    With the doors to its brand new £1million training centre officially open, one of the UK's leading apprentice training providers, Bristol based S&B Automotive Academy, is showcasing its world-class facilities by launching a series of foreign student exchanges for the first time in its 41-year history. To get a flavour of what life is like as an apprentice in the UK, the Academy hosted 16 apprentice engineers and bus drivers from the G9 Automotive College in Hamburg, Germany, as part of a Europe-wide vocational training initiative called the ‘Leonardo Programme’ with support from the European Social Fund. In a reciprocal arrangement, S&B will be sending nine apprentices to Germany during February 2012 so that they can get an appreciation of life in the automotive industry on the Continent. A further three German exchange groups are being planned for next year. Designed to assist the development of vocational skills and training across Europe, including work placements for trainees, the Leonardo Programme has a budget of €1.75bn, which is helping to encourage UK organisations to work with their counterparts abroad. In what is expected to be another challenging year for employers in the UK automotive sector, S&B’s Chief Executive, Jon Winter, claims that the exchange initiative will bring many benefits to the Academy and its apprentices: “In a world of global automotive brands, it’s important for our learners to understand the international context of the industry they have chosen to make their career. This new exchange programme will enable apprentices and Academy staff alike to achieve a better understanding of the challenges and opportunities within the automotive arena in Europe. With the Academy’s influence also extending to the USA and Asia, there’s every possibility that this initiative could move further afield in the future.” Continued Winter: “The need for skilled technicians across the world is on the increase and we actively encourage our apprentices to look at broader horizons during their training. Many of them have already learned the phrase ‘Vorsprung durch Gelehrtheit’, quite simply, ‘Advancement through learning.” In the 2010/11 academic year, S&B doubled the number of successful Apprenticeships over the previous year with some 350 apprentices graduating from the Academy. At the same time, achievement levels reached an all-time high with an overall success rate of 85%. For those learners on the Advanced Apprenticeship three-year programme, success rates were even higher, at over 98%. PHOTO CAPTION: As part of their exchange visit, S&B Automotive Academy arranged for the German apprentices to visit Hampshire bus operator, Bluestar, at its Barton Park depot. The students are pictured with S&B’s Andy West (3rd right) and Steve Prewett, Bluestar’s Area Engineering Manager (2nd right). Ends http://www.sandbaa.com