Leading economist delivers pessimistic outlook for global growth

DeAnne Julius, chairman of think tank Chatham House, has warned that the world could face five years of economic slowdown and a 10% decline in output.

Addressing a G20 breakfast seminar organised by BBC News, Mrs Julius, who was previously a Monetary Policy Committee member of the Bank of England, said there was a 40% chance of such a lengthy slowdown.

Other businessmen from G20 developing countries who participated in the seminar agreed with Mrs Julius’ negative outlook.

A Russian businessman, Igor Kalashnikov, said business at his double glazing company was down two and a half times, while Oktay Gokyildirim said imports had been hit by fluctuations in the exchange rate.

The G20 summit of world leaders is to be held in London next week.

There have been many predictions relating to the global economic slowdown with the International Monetary Fund forecasting that the world will grow by 1.5% to 2% in 2010 after falling by 0.5% to 1% in 2009.

As well as her post at Chatham House, which she has held since July 2003, 59 year old Julius is currently a non-executive director of Lloyds TSB, BP, Serco and Roche Holding Ltd.

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