The Chairman of the Bank of England, Eddie George, has declared that the EU and US economies have already reached their lowest point and are now on course for a steady upturn.
He considers that the US economy hit its trough in the last quarter of 2001, the same happening in Euroland but a little later, at the beginning of 2002.
Speaking at the half-yearly meeting of the group of 10 at the Bank of International Payments in Basel, Switzerland, Eddie George said that for Euroland, the upturn will not only be expected, but will be “very fast” and is confident that “there is no perception of a relapse anywhere in Europe”.
He forecasts a growth rate of 2.5% for the Euroland countries in 2002, with a greater GDP rise in 2003 and 2004.
As for Japan, Eddie George considers that the return to positive growth rates will come later, but still in 2002.
John ASHTEAD PRAVDA.Ru LONDON UNITED KINGDOM