[DEBATE] : Global economic growth 'robust', says ECB
Riaz K Tayob
riazt at iafrica.com
Tue Jan 8 09:09:42 GMT 2008
Global economic growth 'robust', says ECB Basel, Switzerland
07 January 2008 03:20
Global economic growth is "robust" but inflation risks remain as markets
absorb the impact of the United States subprime crisis and higher food
prices, European Central Bank (ECB) chief Jean-Claude Trichet said on
"Food is a very big problem" stoking inflationary pressures, along with
higher energy costs, stock-market corrections and the risks of
protectionist trade policies, Trichet said in his role as spokesperson
for the G10 group of central bankers meeting in Switzerland.
He also said that "we have to look very carefully at the business model
of banks" in the wake of the billions of dollars in losses incurred by
some of the world's leading financial institutions due to their exposure
to the high-risk US mortgage sector.
Despite the downside risks, "at the global level we see confirmation
that growth is continuing at a pace that is quite robust", he said.
The ECB head added that coordinated actions by central banks such as his
own, the US Federal Reserve, the Swiss National Bank and the Bank of
Japan to inject much-needed liquidity into the financial markets had
He stressed that the booming economies of developing nations such as
China and India have proved thus far resilient in the face of the
"The emerging world is not touched," he said.
"Emerging markets have very impressive dynamics. There is no evidence
that there is significant influence from the market correction, which
has been observed in the industrial world," Trichet said. -- AFP
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