ECB admits fallout from US slowdown (BBC News)
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Growing doubts over the future of the US economy may have global repercussions, the European Central Bank has admitted. "Increasing uncertainty surrounding [US} economic growth may
have implications for the economic performance of other areas of the world," the ECB said in its latest monthly bulletin. But the bank, which sets interest rates for countries which have adopted the euro, said Europe may escape largely unscathed from a US slowdown.
"Recent information on economic activity in the euro area points to a picture of continuing robust, albeit slightly slower, growth rates," the report, published on Thursday, said.
In a separate statement, the ECB's chief economist, Otmar Issing, downplayed the slowdown in the US economy.
"So far, there hasn't been any seriously alarming news from the US, only an abrupt reversal in market attitudes," he said in a newspaper interview.
The most likely scenario for the US is a period of wekeaning growth "followed not by recession but by a phase of relatively normal economic performance", he said.
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