World Bank President predicts 1.5% growth rate for world economy in 2002.
James Wolfensohn, the President of the World Bank, forecasts a world economic growth rate of 1.5% for the year 2002, basing his prediction on “weak growth” rates in the three strongest economic blocks, namely the European Union, the United States of America and Japan.
James Wolfensohn declared that these three blocks “have the same type of problems...the first time this has happened in some years”.
As for the European Union, he estimates a growth rate of 1.6% and here his view is the same as most other analysts. Experts are also unanimous in predicting a “weak growth rate” in the coming months for the USA.
Chicago Federal Reserve President, Michael Moskow, predicts that the US economy should begin na upturn some time in 2002, stating that by the end of next year, business should be back on the rails.
He declared, “Many companies are putting off spending projects and are reducing capacity developing plans”. The same phenomenon is taking place at the family level, the motor of the US economy.
At times of political and social uncertainty, people stay at home and fear to venture too far. The same is reflected in the capital markets.
John ASHTEAD PRAVDA.Ru LONDON UNITED KINGDOM