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Europe Daily Bulletin No. 8558
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GENERAL NEWS / (eu) eu/eurogroup

Confirmation of slow recovery in growth - new Commission forecast end October

Luxembourg, 07/10/2003, (Agence Europe) - On Monday in Luxembourg, the Eurogroup confirmed the results of the last meeting (30 September in Dubai) of Finance Ministers and Central Bank Governors from the G7 countries concerning the progressive recovery of world economic activity in general and in the Euro Area in particular.

The recovery is relatively clear, it is underway even if it is not yet strong and it is confirmed by a certain number of indicators, stated, on Monday before the press, the Italian Minister and Eurogroup President, Giulio Tremonti. The latter added that the European Central Bank (ECB), the European Commission and the Ministers 'share this analysis.' Commissioner Pedro Solbes, showed more prudent optimism, feeling that the indicators show the bottom of the economic cycle is behind us and that we are already prepared for an economic recovery. He confirmed the latest Commission estimate for economic activity this year (growth of 0.5% in GDP) and added that his institution's forecasts for 2004 will be finalised in October. Forecasts for growth from the Commission for next year should be inline with the private and public sector estimates in Europe, namely of between 1.5 and 2% of GDP, added the Commissioner. Mr Solbes recalled that there continues to exist 'short-term dangers' for economic activity, but that these dangers 'seem more balanced today than a few months ago.'

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