A trend seems to be developing amongst the world’s policy makers. Last month saw China and the UK’s finance ministries warning of bad times to come. Yesterday, France’s finance minister joined the chorus, saying that she had ‘underestimated the spillover from the US financial and housing market turmoil’. Even more significantly, her boss, French prime minister Francois Fillon, announced a cut in the government’s 2008 growth forecast to just 1%, and warned that the world was facing ‘A very, very serious global economic slowdown’.
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