Global economic growth is likely to bounce back by mid-2002 after the September 11th attacks pushed the United States into recession and damaged demand in other countries, the OECD's chief said today.
The Paris-based Organisation for Economic Cooperation and Development (OECD) is set to more than halve the 2002 growth forecast for its 30 members, according to draft figures for its November 20th projections release.
But secretary general of the economic think-tank, Mr Donald Johnston, said the growth slowdown would not last through all of 2002. The OECD is expected to forecast a rebound in 2003 in its end-year outlook report.
"Generally speaking, there is optimism about flattening out and recovery beginning by the middle of next year on a global basis," the Canadian secretary general told reporters today before making a speech at a business school in Warsaw.
The US economy, which many analysts forecast is in recession now, is seen expanding by a mere 1.3 per cent in 2002 versus an April OECD forecast of 3.1 per cent. But the OECD is also seen forecasting a growth rate of 3.7 per cent in 2003.
The OECD's 30 member countries are seen growing 1.2 per cent in 2002, down from an earlier projection of 2.8 per cent.