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The world economy [September 2001]

Ireland, John (2001) The world economy [September 2001]. Quarterly Economic Commentary, 26 (3). pp. 7-9. ISSN 0306-7866

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Since the publication of our last Commentary in May 2001 most commentators have marked down their views of the short-term prospects for the world economy. In part this reflects poor out-turn data for the second quarter of the year in many economies and in part particular concerns about the future strength of the US economy. That said there still good reasons to expect a mild recovery during the course of 2 0 0 2 in the US, Europe and Japan. It seems likely though that this growth will be below historical trend rates and there are significant downside risks, particularly given the potential consequences of the terrorist attacks in the US.