PARIS - THE US economy is slowing and may be entering a recession, the European Commission's top economics official said on Monday at an OECD conference here.
'We are no longer enjoying the buoyant economic climate of the last two years. We are no more in economic 'good times',' EU Economic and Monetary Affairs Commissioner Joaquin Almunia said.'The US economy is clearly slowing, perhaps even entering a recession,' he added.
Mr Almunia addressed delegates at an Organisation of Economic Cooperation and Development conference with a speech mostly dedicated to the need for structural economic reform in Europe.
He stressed that Europe was 'far from the risk of recession' despite the danger of contagion from the United States, which is struggling with a housing and credit crisis.
Mr Almunia's comments about the US economy echo forecasts from private sector economists. After a string of weak economic data and surveys in the US, most now believe the world's biggest economy is contracting.
At the end of February, the European Commission cut sharply its 2008 growth estimate for the 15 countries in the eurozone and the 27-member European Union.
Growth in the eurozone this year was forecast to be 1.8 per cent from 2.2 per cent previously, while the EU would grow by 2.0 per cent rather than 2.4 per cent as predicted in November.
'Last month we have had to revise our growth forecasts down slightly and the EU is now predicted to grow below potential this year,' he said.
'But 2.0 per cent is clearly far from the risk of recession.' -AFP
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