Mervyn King gives Warning over the Economy

The video discusses the economic impact of severe weather, particularly snow, on recovery efforts in areas like New Castle. It highlights the rising inflation due to increased commodity and energy prices, predicting a temporary rise before a decline next year. Mervyn King argues against raising interest rates despite growth contraction. The video also addresses government spending cuts, unemployment, and the challenges businesses face. It concludes with a cautious outlook for 2011, questioning whether current economic shrinkage is a temporary blip or the start of a double dip recession.

What is the expected inflation rate in the coming months according to the video?

• Between 8% and 9%

• Between 6% and 7%

• Between 4% and 5%

• Between 2% and 3%

What was the economic performance at the end of 2010?

• Significant growth

• Slight decline

• Flat growth

• Rapid decline

What is one of the reasons for the economic slowdown mentioned in the video?

• Strong global demand

• Increased government spending

• Severe weather conditions

• High consumer confidence

Which sector performed well despite the adverse weather conditions?

• Manufacturing

• Real Estate

• Tourism

• Retail

What is the predicted outlook for 2011 according to the video?

• A year of economic recovery

• A year of declining inflation

• A very tough year for families and businesses

• A year of stable growth