CHINA: British Chancellor of Excheque George Osborne speaking in Hong Kong says action must be taken to ensure problems in emerging markets don't add to a new crisis

Record ID: 191239

  • Title: CHINA: British Chancellor of Excheque George Osborne speaking in Hong Kong says action must be taken to ensure problems in emerging markets don't add to a new crisis
  • Date: 20th February 2014
  • Summary: HONG KONG, CHINA (FEBRUARY 20, 2014) (AGENCY POOL) UK CHANCELLOR OF THE EXCHEQUER, GEORGE OSBORNE, WALKING TO PODIUM OSBORNE SPEAKING AUDIENCE (SOUNDBITE) (English) CHANCELLOR OF THE EXCHEQUER, GEORGE OSBORNE, SAYING: "My message in Hong Kong is this, the risks to economic recovery have not gone away. Together, we have to act now to ensure the emerging market problems don't contribute to a new crisis. And how do we do that? By each one of us putting our own houses in order, and by using the G20 to make sure we all confront our problems instead of running away from them." AUDIENCE (SOUNDBITE) (English) CHANCELLOR OF THE EXCHEQUER, GEORGE OSBORNE, SAYING: "And in recent months, we have seen volatility in several emerging markets, with currencies weakening about to 19 percent, bond yield spiking about to 11 percent, and sudden falls in equity markets across Latin America and Asia. Now most emerging markets are much more robust than they were in the late 1990s. And in many cases, flexible exchange rates are functioning correctly as shock absorbers. But if we've learned anything from the recent great recession, it is that this inter-connected global economy means one country's problems can very quickly become everyone else's problem." AUDIENCE OSBORNE SPEAKING
  • Embargoed: 7th March 2014 12:00
  • Keywords:
  • Location: Hong Kong, China
  • City:
  • Country: Hong Kong
  • Topics: Economy,Politics
  • Reuters ID: LVA2UHKNKFXEKIWWF5APPNN0NWO1
  • Story Text: The risks to a global economic recovery have not gone away, said Britain's finance minister in a speech in Hong Kong on Thursday (February 20).
    The Chancellor of Exchequer, George Osborne, was in Hong Kong en route to a G20 finance ministers' meeting in Australia that runs from February 22-23.
    "My message in Hong Kong is this, the risks to economic recovery have not gone away. Together, we have to act now to ensure the emerging market problems don't contribute to a new crisis. And how do we do that? By each one of us putting our own houses in order, and by using the G20 to make sure we all confront our problems instead of running away from them," Osborne said.
    He also highlighted the recent volatility in some emerging markets and warned that one country's problems could spread quickly in today's world.
    "And in recent months, we have seen volatility in several emerging markets, with currencies weakening about to 19 percent, bond yield spiking about to 11 percent, and sudden falls in equity markets across Latin America and Asia. Now most emerging markets are much more robust than they were in the late 1990s. And in many cases, flexible exchange rates are functioning correctly as shock absorbers. But if we've learned anything from the recent great recession, it is that this inter-connected global economy means one country's problems can very quickly become everyone else's problem," Osborne said.
    In a briefing note prepared for the upcoming meetings and released on Wednesday (February 19), the International Monetary Fund said recent market volatility highlights key risks in some emerging markets.
    Its outlook for global growth was similar to its last assessment in January, with growth of about 3.75 percent seen for this year and 4.0 percent in 2015.
    Osborne's speech is likely to be one of his last before he delivers his budget statement on March 19. The budget will be his final chance to meaningfully alter fiscal policy before a May 2015 election.
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