11 June 2001, 14:45 BIS says euro zone protected from worse H2 slowdown by robust domestic demand
BASEL (AFX) - The euro area withstood the economic slowdown faced
during the second half of last year better than the US and Japan due to
its robust domestic demand, said the Bank for International Settlements
(BIS) in its annual report.
"The euro area also experienced a significant cooling during the
second half. It was, however, less pronounced than in the U.S. and
Japan," it said.
Household confidence and spending were modestly affected by the
economic downturn and the correction on the equities market, as
Europeans households hold far fewer shares than their US counterparts,
it said.
Most euro area countries are less dependent on the slumping
high-tech equipment production than the US and Asia, it added.
Another factor playing in the euro area's favour was its lesser
dependence on exports towards the US and Asia, it said.
The euro area's was consequently well placed to resist this
"unfavourable" external shock.
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