1st World Recession In Two Decades Indicated
The world has plunge into recession for the first time in 20 years, says the OECD.
The world has plunged into recession for the first time in two decades in the wake of the 11 September attacks that delivered a "severe shock" to the global economy, the OECD said Tuesday
The Organisation for Economic Co-operation and Development said its 30-nation zone would contract "slightly" in the second half of this year and was forecast to stay weak into 2002.
In its bi-annual economic outlook the organisation said output would fall 0.3 per cent in the second half of 2001, the first drop in 20 years. Growth would probably come in at 1.0 per cent both this year and in 2002, marking the worst performance since the Second World War.
However a strong rebound was expected late next year paving the way for 3.2 per cent growth in 2003.
"The downward risks are substantial," it said.
A variety of adverse effects could occur......which would tend to aggravate present weakness and cast doubt on a speedy and robust rebound."