ECB's Stark Sees No Potential For Global Recession - Report

ECB's Stark Sees No Potential For Global Recession - Report

Sun, Sep 21 2008, 12:14 GMT
http://www.djnewswires.com/eu

ECB's Stark Sees No Potential For Global Recession - Report

FRANKFURT (Dow Jones)--The crisis on the international financial markets won't lead to a global recession as the world isn't as much dependent upon the U.S. economy anymore, European Central Bank executive board member Juergen Stark said in an interview published Sunday.

"I don't see any potential for a global recession," Stark told Sunday paper Welt am Sonntag. In addition to being less dependent upon developments for the U.S. economy, the world economy is benefiting from newly established growth drivers in emerging markets, he said.

Stark said he isn't afraid there might be a period of deflation ahead.

"There's no sign of such a scenario," he told the paper. Previous "exaggerations" on the financial markets are now being corrected, and such a process "is painful," he said.

As for German economic growth, Stark said we "are likely to see very weak data in the third quarter." Depending on how much the recent developments will weigh on investors' and private households' sentiment, "we may see weaker economic growth in Germany over a prolonged period of time," he said.

Newspaper Web site: http://www.welt.de

-By Klaus Brune, Dow Jones Newswires; 49-69-29725-500; klaus.brune@dowjones.com

(END) Dow Jones Newswires

September 21, 2008 08:14 ET (12:14 GMT)

From: http://www.fxstreet.com/news/forex-news/article.aspx?StoryId=72676c62-99d7-43fc-80f2-b7363e4b2a72