24 September 2001, 09:53 Worldwide GDP seen falling by 2.2 pct in 2002, UK by 1.2 pct - CEBR
LONDON (AFX) - Worldwide GDP is expected to fall by 2.2 pct next
year as a result of the attacks on the US on September 11, while UK GDP
is predicted to drop by 1.2 pct, the Centre for Economics and Business
Research said in a report.
Projections for worldwide GDP for 2002 have been cut by 466.71 bln
usd, the report said.
"The predictions we made three months ago were already more
pessimistic than those of most economic analysts, and had the terrible
events not happened we would have left the numbers more or less
unchanged," report author Douglas McWilliams said.
"Although the outlook is highly uncertain, we are clear that in the
short term the world economy has been dealt a blow which will depress
world growth for at least the next nine months and possibly for
longer."
McWilliams said the projections are based on three factors -- that
there are no further terrorist attacks, that expected reprisals by the
US do "not destabilise the world economy further", and public spending
in the US is increased.
"Clearly the outcomes could be much worse than this. But we have
had to choose a set of base assumptions and these look as likely as
any," he told BBC television late yesterday.
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