Last Modified: 03 Jul 2008 Source: PA News Soaring world oil prices risk prolonging the world economic slowdown, US Treasury Secretary Hank Paulson has warned. Following talks in London with Chancellor Alistair Darling, Mr Paulson said that the rise in energy prices presented a "strong head wind" to growth in the world economy. However he insisted that the "fundamentals" of the US economy were strong and predicted that growth would pick up in America by the end of the year. "I think that the oil prices are a strong head wind and at this level ... they have got a high risk that they are going to prolong the slowdown," he said. Mr Paulson said that the "turmoil" in the financial markets and the "correction" in the US housing market would continue for some time. However he said that he believed the outlook would improve towards...
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