US slowdown likely to hit world economy

US slowdown likely to hit world economy
Reuters

KOBE, Japan, Jan 14: Finance ministers from 25 Asian and European nations warned on Sunday that the outlook for the world economy had suddenly darkened because of a slowdown in the United States.

In the draft of a statement to be issued after a two-day Asia-Europe Meeting (ASEM) in this western Japanese Port city, the ministers vowed to keep taking measures to make their economies more robust and to further reduce their vulnerability to external shocks.

The communique, which made no reference to recent exchange rate trends, said long-term growth prospects in Asia and Europe had improved over the past two years, with inflation remaining generally under control.“However, developments in the recent weeks confirm that downside risks to the outlook have increased, particularly those associated with the continuing economic and financial imbalances in the global economy, and slowing down of the US Economy,” the draft statement said.