This doesn't sound good.
Stan
Tuesday, 27 November, 2001, 21:33 GMT
Worse to come for US economy
news.bbc.co.uk
The US economy, which officials have admitted has entered recession, will perform even worse next year than in 2001, a leading economic group has said.
America's economy, the world's biggest, will grow by 0.75% next year, the Organisation for Economic Cooperation and Development (OECD) said.
Rising unemployment and continuing lay-off announcements are dampening confidenc
Lynn Franco, Conference Board
This figure compares with an estimated 1% expansion this year, the organisation said.
The forecast comes a day after an official panel ruled that the US had entered its first recession in a decade, ending the country's longest ever period of economic expansion.
But the OECD predicted that, despite the country's weak performance next year, the period of actual recession "should prove short lived".
And a climate of low inflation and continued improvements in productivity would see the US economy recover to expansion rates of 3.5-4.0% in 2003, as "pent up consumer demand is unleashed".
The OECD, dubbed by some observers as the "rich nations club", represents the world's 30 most developed economies, selected mainly on the basis of their commitment to free markets and democracy.
Shares fall
The forecast came within hours of a leading US business group revealing that consumer confidence had fallen for its fifth successive month.
The data, from the Conference Board, undermined hopes of an imminent end to the US downturn, sending stocks sharply lower in early trade.
The Dow Jones Industrial Average, which some observers had predicted would break back through the 10,000 mark on Tuesday, ended 110.15 points lower at 9,872.60. |
