ECB chief calm in face of US slump

Speaking to the German CDU political party in Wiesbaden over the weekend, Trichet says any US downturn will be “partly offset” by the continued strength of emerging market economies. Trichet says eurozone economic fundamentals remain sound, with annual real GDP growth expected to be between 2.4% and 2.8% in 2007. Eurozone GDP growth is predicted to slow to between 1.5% and 2.5% in 2008 and between 1.6% and 2.6% in 2009. However, Trichet noted continued threats to future growth. “In view of the potential impact of ongoing financial market volatility and re-pricing of risk on the real eco...