17 September 2001, 16:44  O'Neill says US GDP should return to 3.2 pct growth next year

WASHINGTON (AFX) - Treasury Secretary Paul O'Neill said US GDP growth should return to a faster pace of growth in coming months, reaching 3.2 pct next year, despite the impact of terrorist attacks on New York and Washington. "I believe that we were beginning to crawl out of a very low rate of real growth, and I think we'll continue with that movement," O'Neill said in an interview on NBC television. "Into next year we should return to something more like a normal American growth rate of 3.2 pct or something in that order of magnitude," he said. He recognised that the economy will "have some dislocations," including in the transportation sector. Asked whether the federal government would support financial assistance for the airline or insurance sectors, O'Neill said "you can be really sure we will move deliberately and swiftly." "There's very broad sweep of work going to look at every sector and to see what the real needs are and ... what the appropriate role of the federal government is," he said. New York Stock Exchange Chairman Richard Grasso said on the same program that when equity trading begins later this morning "there may be volatility in the sort term." However, he urged investors to look at the long term.

© 1999-2024 Forex EuroClub
All rights reserved