11/07/2003 13:20
European Central Bank President Wim Duisenberg said on Thursday that economic growth in the 12-country euro zone remained "subdued" in the second quarter of this year and there were no signs of a significant improvement in production and confidence.
"The latest data and information continue to suggest that economic growth in the euro area remained subdued in the second quarter of the year, after virtually stagnating in the first quarter," Duisenberg told a news conference here.
"The indicators available broadly point to a stabilisation of activity but there are no signs as yet of an underlying strengthening in production and confidence," he said.
In Brussels earlier, the European statistics office Eurostat calculated that the euro-zone economy expanded by 0.1 percent in the first three months of 2003, a slight upward revision of an earlier estimate of zero growth.
Nevertheless, "on the whole, we continue to expect a gradual strengthening of economic activity in the euro area," Duisenberg added.
"This should be supported by lower inflation and thus higher real disposable income, the low level of interest rates and a recovery in external demand for euro-area goods and services."
Duisenberg was speaking at a news conference held shortly after the ECB decided to hold its key interest rate steady at 2.00 percent.
"The latest data and information continue to suggest that economic growth in the euro area remained subdued in the second quarter of the year, after virtually stagnating in the first quarter," Duisenberg told a news conference here.
"The indicators available broadly point to a stabilisation of activity but there are no signs as yet of an underlying strengthening in production and confidence," he said.
In Brussels earlier, the European statistics office Eurostat calculated that the euro-zone economy expanded by 0.1 percent in the first three months of 2003, a slight upward revision of an earlier estimate of zero growth.
Nevertheless, "on the whole, we continue to expect a gradual strengthening of economic activity in the euro area," Duisenberg added.
"This should be supported by lower inflation and thus higher real disposable income, the low level of interest rates and a recovery in external demand for euro-area goods and services."
Duisenberg was speaking at a news conference held shortly after the ECB decided to hold its key interest rate steady at 2.00 percent.
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