World Economy

Apr 29, 2008

U.S. President George W. Bush said Tuesday that economic activity of the USA was "very slow" and that this would be reflected in the figures of growth expected Wednesday, although it has carefully avoided talk of recession, in a press conference .

"I think they will show that this is a very slow economy," he replied to a question about what he expected the figures of Gross Domestic Product (GDP) for the first quarter to be published Wednesday.

But "I can not guess what will be the figure" of growth, he added, asserting that had not been informed in advance of the contents of this report.

Analysts expect a very low growth, of around 0.5% (annual rate), and this report is eagerly awaited by economists who believe in their majority that the USA are already in recession.

To cope with this threat, the central bank should lower its key interest rate a quarter point Wednesday to further reduce it to 2%.

Mr. Bush reiterated that times were "tough" for the economy while refusing to say whether or not it met the criteria of the recession.

"We will leave economists define what it is," he said.

The threat of recession has already pushed the administration to launch a massive relaunch plan, providing some 152 billion dollars of tax rebates for the single year 2008. The first transfers were made Monday and M. Bush has been cautious on whether a new plan.

"Wait and see what effects," he said.

Mr. Bush has ruled out stopping to fill strategic oil reserves, believing that it "would not affect prices on the market.

"We buy about 67,000 barrels of oil per day (...). The global demand is 85 million barrels per day," he stressed.

"I do not think it will affect prices, when you touch a tenth of 1%," he added, judging that it was "in our national interest" to fill these reservations "where there would be a major disruption of crude oil. "

He also refused to comment on the idea of a moratorium on taxing gasoline during the summer, put forward by the Republican John McCain and Democrat Hillary Clinton in the race for the White House.

"I am open to all ideas. And we will analyse everything that is presented to us," he said.

On the international level, Mr. Bush has advocated diplomacy faces serious challenged.

Two weeks before travelling to the Middle East, he said continue to hope for a peace agreement between Israelis and Palestinians before the end of the year, despite the limited time remaining, the lack of progress in negotiations and continuing violence.

He suggested that the initiative of former President Jimmy Carter to speak to the organization radical anti-Israeli Hamas no point in his eyes, because Mr. Bush "(see) no Hamas change" and they "say one thing and do another."

He again denounced the actions of Iran, Syria and the organizations they support in the Palestinian Territories, Iraq and Lebanon.

Thus the "revelation" last week that North Korea, another pet peeve of USA, had helped Syria to build a nuclear reactor that could be used for military purposes should not only force North Korea to show d 'complete good faith in its process of denuclearization, he said. It should also show that Iran could also conduct a clandestine nuclear programme but nobody knows nothing, he said.

World Economy

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