FRANKFURT, Aug 28: The European Central Bank has cut its forecast for growth in the eurar Issing said in a newspaper interview published on Wednesday.

In the past, the ECB has repeatedly insisted the euro-zone economy has potential to grow by 2.0-2.5 per cent and growth would pick up sharply during the second half to reach that potentas correct, Issing told the financial daily Boersen-Zeitung.

The expected pick-up in growth has not materialised, Issing said.

Expressed another way, the expected relatively steep growth angle has become stagnation at a higher level, which must not be confused with a decline.

But this will lead to a lower annual average growth rate, Issing said, without making any new forecast. Issing insisted, however, that there was no risk of recession.—AFP