A stark warning by state media Wednesday of possible mass unrest in China signalled deepening fears over the global recession, as Europe grappled with more job losses and an energy cutoff during a winter freeze.
The economy of Asian powerhouse China might become so bad in the next few months that the fabric of the world’s most populous nation could start unraveling, the authoritative weekly Outlook, published by the Xinhua news agency, warned in its latest edition.
By Beth O’Connell, AFP
The magazine said that “enterprise closedowns, layoffs and labour disputes have significantly increased” and with workers’ livelihoods threatened, “their pent-up discontent could easily burst out… and spark mass conflicts.”
European workers are also feeling the brunt of the global recession with official data showing that the number of people out of work in Germany rose by 114,000 in December to 3.1 million.
On Britain’s high street, iconic retailer Marks & Spencer said it would slash up to 1,230 jobs and close 27 stores as consumer spending, the driver of the British economy, shrinks.
Analysts expect the Bank of England to intervene in this recessionary climate Thursday and cut its key interest rate to the lowest ever level.