Saudi Arabia welcomes trilateral border treaty between Tajikistan, Kyrgyzstan, and Uzbekistan    Trump prepares to unveil sweeping new US tariffs on 'Liberation Day'    At least 22 civilians killed in Israeli strike on UNRWA clinic in Gaza    UK says it won't jump into US trade war as Starmer urges calm response to tariffs    Russia, Ukraine trade fresh accusations of violating US-brokered energy ceasefire deal    Swedish table tennis legend Jörgen Persson appointed head coach of Saudi national team    Danilo Pereira fires Al Ittihad into King's Cup final with dramatic stoppage-time double    Over 1 million pilgrims benefit from golf cart service at Grand Mosque during Ramadan    Visitors welcomed with Eid initiative at Thee Ain Heritage Village in Al-Baha    Tebuk emir reviews rain response in Tayma    Saudi Arabia considers rent cap as part of major real estate reforms    Messi's bodyguard banned from touchline at Inter Miami games    Screen time in bed linked to insomnia, study finds    Haramain High-Speed Railway transports over 1.2 million passengers during Ramadan    Saudi Transport Authority says passengers can ride for free if taxi meters are off    Ministry of Education forms 425 community partnerships with SR653 million impact    Mexico bans junk food in schools to fight childhood obesity epidemic    Sweet sales surge ahead of Eid as Saudi chocolate imports top 123 million kg in 2024    Saudi creatives shine at Jeddah's Fawanees Nights with art, fashion, and storytelling    T1 CEO confirms Gumayusi's return for LCK Spring after lineup shakeup    Bollywood actress vindicated over boyfriend's death after media hounding    Grand Mufti rules against posting prayers and preaching in mosques on social media    King Salman prays for peace and stability for Palestinians in Ramadan message King reaffirms Saudi Arabia's commitment to serving the Two Holy Mosques and pilgrims    Bollywood star Saif Ali Khan 'out of danger' after attack at home in Mumbai    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



EU Outpaces US as it Reaps Reward of Risk Aversion
Agencies
Published in The Saudi Gazette on 07 - 03 - 2008

Claude Trichet's European economy may be reaping the rewards of risk aversion.
As the USteeters on the brink of a recession after the end of a five-year housing boom, growth in the 15 nations that share the euro is poised to outpace the American economy for a second straight year.
The region's resilience lets Trichet focus on fighting inflation instead of cutting interest rates. Because Europeans save more than Americans and splurge less on houses and stocks, the continent is better placed to withstand the global credit squeeze without the need for lower borrowing costs.
“To be thrifty is a good thing and definitely a plus for the European economy in this tough period,” said Jean-Michel Six, chief European economist at Standard & Poor's in London. “The attitude to debt and credit is clearly very different between the US and Europe.''
US growth will slow to 1.5 percent this year from 2.2 percent in 2007, according to the International Monetary Fund. The Washington-based fund forecasts the euro-area economy will expand 1.6 percent after 2.6 percent last year.
While that has pushed the euro to a record against the dollar, German companies have compensated by improving efficiency and reducing labor costs. Adidas AG, the world's second-largest sporting-goods maker, reported a 63 percent jump in fourth-quarter profit yesterday, and sports-car maker Porsche SE said Tuesday that first-half profit rose 44 percent.
“We are seeing the best performance in years despite the exchange rates,” ECB council member Nout Wellink said on Feb. 27.
Growth in Europe's service industries accelerated in February, unemployment fell to the lowest since records began in 1993 and business confidence in Germany, the region's largest economy, unexpectedly rose for a second month.
The economy's performance will allow the ECB to keep its benchmark rate at a six-year high of 4 percent today, said all 54 economists surveyed by Bloomberg News. The ECB announces its decision at 1:45 p.m. in Frankfurt and Trichet, 65, briefs reporters 45 minutes later. Inflation is running at 3.2 percent, the fastest since the euro's debut in 1999.
The ECB's inflation-fighting zeal contrasts with the growth-oriented policy of the Federal Reserve. The Fed has cut its key rate by 2.25 percentage points as the US economy reels from the worst housing recession in a quarter century. The slump has made banks reluctant to lend and caused credit markets to seize up in August.
US manufacturing shrank at the fastest pace in almost five years last month and in January US home sales fell to the lowest level since records began.
The euro area isn't completely immune. __


Clic here to read the story from its source.