The global economy will stay in recession in early 2002 but is forecast to improve in the second half of the year, according to the latest Economist Intelligence Unit (EIU) report.
In its annual
Country-by-Country
report, the research arm of the
Economist
magazine also says Ireland and Luxembourg will be the fastest-growing economies in Europe next year.
The EIU predicts world growth will average an anaemic 1.4 per cent next year, barely above the estimated rate of 1.2 per cent in 2001.
North America will be the slowest-growing region in the world in 2002, with the US managing growth of less than 1 per cent. But aggressive policy action to stimulate the US economy will ensure that the US starts to recover in the second half of 2002.
GDP growth in western Europe will remain weak at 1.4 per cent – faring no better in 2002 than in 2001 - with Germany and France depressing the overall performance.
Japan’s economy will contract for a second consecutive year by 1.1 per cent - the worst performance in Japan since the Second World War.
For the second year in succession, Equatorial Guinea will be the fastest-growing country in the world, an exceptional ranking due to the rapid expansion of its oil sector, and Zimbabwe will again be the slowest.
Last year's Country-by-Countryreport warned the Taliban's continued support for Osama bin Laden "could result in US attacks on Afghanistan, if Mr bin Laden is held responsible for any anti-US terrorist actions".