US Economy At Standstill: Greenspan

Source : The Business Times, February 26, 2008

(JEDDAH) US economic growth has stalled and the longer it stays at zero, the more likely the world's largest economy will start to contract, former US Federal Reserve chief Alan Greenspan said yesterday.

'As of right now, US economic growth is at zero,' Mr Greenspan said at an investment conference in Jeddah, Saudi Arabia's second-largest city. 'We are at stall speed.'

In updated economic forecasts released last week, the US central bank lowered its outlook for 2008 growth by a half point to between 1.3 per cent and 2 per cent, citing the prolonged housing slump and bottlenecks in credit markets. The oil boom will 'go on forever', Mr Greenspan said. -- Reuters