ECB chief upbeat on world economy

EUROPEAN Central Bank chief Wim Duisenberg has given an upbeat assessment of the global economy and predicts that growth on the Continent will pick up by the end of the year.

'There are now more and more signs that the global economic downturn may have come to an end around the end of 2001,' Duisenberg said in a speech in China. 'A mild recovery is generally expected to start in the course of 2002 and to accelerate in 2003. The risks previously envisaged in connection with the 11 September events appear to have largely evaporated.'

Speaking of the eurozone economy, he said: 'At the end of the year, economic growth should reach a level close to potential growth. For the time being, however, the strength and precise timing of this recovery remain uncertain.' The ECB estimates potential or trend growth at 2% to 2.5%.

Duisenberg's positive remarks were echoed by Germany's finance ministry, which said it expected growth in the eurozone's biggest economy to accelerate to 3% in 2003. 'The economic indicators show that Germany is on the threshold of a new economic upturn,' it said in its monthly report.

The single currency dipped slightly to 87.25 US cents, or 61.10p.