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World Economy Expected to Grow over 1.4 Pct, Liberated from Terror Shock

World Economy Expected to Grow over 1.4 Pct, Liberated from Terror Shock

Posted March. 06, 2002 09:28,   


Unlike the expectations that the world economy will drastically shrink by the 9.11 terrorist attack, the world economy is now rapidly recovering and anticipated to show more steady growth in the second half of this year.

The Economists Intelligence Unit (EIU), the information analysis company affiliated to the Economists Weekly released a report, `shock of 9.11,` looking back the 6 months after the terror. EUI is an international information analysis experts group composed of 500 international analysts through a global network to analyze the conditions of politics, economy, and business of 195 countries and prospect the moves of world economy.

The EIU report anticipated 1.4 percent of world economy growth this year and 3.3 percent annual growth from next year to 2006. The reasons that the world economy could escape from the shock of 9.11 terror were indicated that the U.S. completed the war on terrorism in Afghanistan quickly avoiding such a long war in Vietnam and that, unlike the world anticipation, the Islam circle preserved in clam without shaking the security of the world by protests.

However, EIU anticipated 30 percent of `double dip` possibility that the U.S economy dips down by the continuous increase of the unemployed rate and therefore the world economy dips down together until mid 2003.

EIU anticipated the expansion of the U.S. war on terrorism to Yemen and Somalia with 95 percent possibility and the overthrowing operation against Saddam Hussein with 50 percent, and the Military operation to the North with 5 percent.

Eun-Taek Hong euntack@donga.com