Davos 2011: Roubini warns UK and eurozone are still vulnerable to double-dip recession

[CHIMO]

Britain and the weaker nations of the eurozone remain vulnerable to the risk of a double-dip recession, even though the rest of the world economy is recovering from the global economic crisis, leading US economist Nouriel Roubini warned today.

Speaking at the World Economic Forum in Davos, in the wake of yesterday's news of a surprise fall in UK growth, Roubini highlighted concerns about possible further weakness in the economy in 2011. The warning came just hours after Mervyn King, the governor of the Bank of England, said UK households were suffering the most prolonged fall in living standards since the 1920s.

Roubini said today that he saw the global economy as a "glass half-full and a glass half-empty", with signs of recovery in both the developed and developing worlds, and businesses in good financial health. But he also said he was concerned about the "anaemic" pace of growth in advanced economies, the risk of further sovereign debt crises, rising commodity markets, structural problems in the United States and the re-emergence of global economic imbalances.

Roubini, a professor at the Stern School of Business at New York University, made his reputation by being one of the few economists to predict the crash of 2007 and has been dubbed Dr Doom for his gloomy predictions throughout the crisis.

http://www.guardian.co.uk/business/2011/jan/26/davos-global-economy