'Eurozone economic outlook dimming'
Wednesday, 9 July 2008
BRUSSELS, July 8 (AFP): Signs of an economic slowdown are on the rise in the 15 countries sharing the euro while oil prices are likely to remain high, the head of the Eurogroup of Eurozone finance ministers warned yesterday.
"Signs of economic slowdown are multiplying and the second quarter will be much less buoyant than the first was," Luxembourg Finance Minister Jean-Claude Juncker said after chairing a meeting with his Eurozone counterparts.
"We are seeing this in (economic) confidence indicators," Juncker told journalists.
Despite financial market turmoil and soaring oil prices, the Eurozone economy grew 0.8 per cent in the first three months of the year. Official growth figures have yet to be published for the first quarter.
Since then, oil prices have risen even higher to records over 140 dollars a barrel, pinching consumers' purchasing power and hitting companies' margins.
"We should get used to the fact that prices will remain in the coming months at high levels," Juncker said.
EU Economic and Monetary Affairs Commissioner Joaquin Almunia said that storm clouds had gathered over the Eurozone since the European Commission forecast in April that the bloc's economy would grow 1.7 per cent this year.
"As regards the second half of the year, we should not be very optimistic. The risks of a slowdown are stronger than they were in April," he said.
"Signs of economic slowdown are multiplying and the second quarter will be much less buoyant than the first was," Luxembourg Finance Minister Jean-Claude Juncker said after chairing a meeting with his Eurozone counterparts.
"We are seeing this in (economic) confidence indicators," Juncker told journalists.
Despite financial market turmoil and soaring oil prices, the Eurozone economy grew 0.8 per cent in the first three months of the year. Official growth figures have yet to be published for the first quarter.
Since then, oil prices have risen even higher to records over 140 dollars a barrel, pinching consumers' purchasing power and hitting companies' margins.
"We should get used to the fact that prices will remain in the coming months at high levels," Juncker said.
EU Economic and Monetary Affairs Commissioner Joaquin Almunia said that storm clouds had gathered over the Eurozone since the European Commission forecast in April that the bloc's economy would grow 1.7 per cent this year.
"As regards the second half of the year, we should not be very optimistic. The risks of a slowdown are stronger than they were in April," he said.