BoE’s Haldane says world economy could slow but unlikely to contract

While the world economy could slow as Chinese output moderates, it is unlikely to contract, Bank of England chief economist Andy Haldane told a local newspaper on Tuesday.

China has been at the centre of concerns about a slowdown in emerging markets and of the volatility that has plagued financial markets since the beginning of the year.

“Do I think there is a big risk of us being tipped into negative growth in the world economy? That strikes me as quite unlikely as things sit today,” Haldane told the Express and Star, a newspaper from Wolverhampton in England’s midlands.

“We would have to fall a long way, or something very untoward would have to happen for that to fall into negative territory.”

He also said Britain’s economy continued to grow “pretty steadily”.

(Reporting by Ana Nicolaci da Costa and Andy Bruce)