Don K Dyck
Devilish Don Downunder
- Joined
- Jun 29, 2002
- Posts
- 8,255
Good evening. Here is the news.
The U$ economy continued its slide into bankruptcy and the U$-Iraq Imperialist War of Conquest to Control Undeveloped Middle East Oil Reserves has not helped.
From The Australian
War delays recovery: World Bank
From AFP
04apr03
THE Iraq war was delaying a global recovery just as the authorities run low on ammunition to stir growth, the World Bank warned yesterday.
The war had cast a shadow over the economic and political landscape for months, said the Bank's Global Development Finance 2003 report, drawn up in the run-up to combat.
"The recovery in the global economy has likely been delayed further while downside risks have risen, especially for countries in and around the Middle East," it said.
Economic growth would be sluggish even if the Iraq war was resolved quickly.
World economic output was expected to expand 2.3 per cent in 2003, up from 1.7 per cent growth last year, it said.
Growth in rich countries was set to rise to 1.9 per cent this year from 1.4 per cent last year. In developing countries, growth would accelerate to 4 per cent in 2003 from 3.1 per cent.
Industrialised nations had boosted fiscal stimuli and cut interest rates, cushioning the world from an even sharper slump, the bank said. These measures, however, had also deepened deficits.
The US current account deficit – its shortfall in overall financial dealings with the outside world – had expanded to an unprecedented 5 per cent of annual gross domestic product. "In this challenging financial environment, the global rebound is lacking sectoral and geographical balance," the report said.
Policy makers now had less space to cut taxes, boost spending or lower interest rates.
"A worrisome characteristic of the current economic environment is that macro-economic policies may be running up against their limits," the World Bank report said.
"On balance, those policies in 2003-04 are more likely to be less stimulative – or restrictive – rather than expansive."
Federal Reserve policy makers would probably hold US interest rates steady at a four-decade low for the rest of 2003 if growth rebounded, as expected, the report said.
The European Central Bank had more room to cut rates and could trim rates slightly in the first half of this year.
The Bank of Japan, which had no more room to lower short-term rates, was expected to step up its already aggressive approach to add liquidity.
Central banks must be alert to the danger of deflation, particularly because it could increase the cost of servicing debts.
Next year, world economic growth was forecast to pick up to 3.2 per cent, with the rich countries growing 2.9 per cent and the developing countries growing 4.7 per cent.
The world growth potential had been boosted by the lowering of barriers to cross-border trade and financial flows, investment in people, and improved productivity, the bank said.
The U$ economy continued its slide into bankruptcy and the U$-Iraq Imperialist War of Conquest to Control Undeveloped Middle East Oil Reserves has not helped.
From The Australian
War delays recovery: World Bank
From AFP
04apr03
THE Iraq war was delaying a global recovery just as the authorities run low on ammunition to stir growth, the World Bank warned yesterday.
The war had cast a shadow over the economic and political landscape for months, said the Bank's Global Development Finance 2003 report, drawn up in the run-up to combat.
"The recovery in the global economy has likely been delayed further while downside risks have risen, especially for countries in and around the Middle East," it said.
Economic growth would be sluggish even if the Iraq war was resolved quickly.
World economic output was expected to expand 2.3 per cent in 2003, up from 1.7 per cent growth last year, it said.
Growth in rich countries was set to rise to 1.9 per cent this year from 1.4 per cent last year. In developing countries, growth would accelerate to 4 per cent in 2003 from 3.1 per cent.
Industrialised nations had boosted fiscal stimuli and cut interest rates, cushioning the world from an even sharper slump, the bank said. These measures, however, had also deepened deficits.
The US current account deficit – its shortfall in overall financial dealings with the outside world – had expanded to an unprecedented 5 per cent of annual gross domestic product. "In this challenging financial environment, the global rebound is lacking sectoral and geographical balance," the report said.
Policy makers now had less space to cut taxes, boost spending or lower interest rates.
"A worrisome characteristic of the current economic environment is that macro-economic policies may be running up against their limits," the World Bank report said.
"On balance, those policies in 2003-04 are more likely to be less stimulative – or restrictive – rather than expansive."
Federal Reserve policy makers would probably hold US interest rates steady at a four-decade low for the rest of 2003 if growth rebounded, as expected, the report said.
The European Central Bank had more room to cut rates and could trim rates slightly in the first half of this year.
The Bank of Japan, which had no more room to lower short-term rates, was expected to step up its already aggressive approach to add liquidity.
Central banks must be alert to the danger of deflation, particularly because it could increase the cost of servicing debts.
Next year, world economic growth was forecast to pick up to 3.2 per cent, with the rich countries growing 2.9 per cent and the developing countries growing 4.7 per cent.
The world growth potential had been boosted by the lowering of barriers to cross-border trade and financial flows, investment in people, and improved productivity, the bank said.
