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| Accountants say world on brink of economic downturn Deloitte & Touche say the world could be on the brink of the "worst economic downturn" since the Second World War. The accountants add that the British economy is also expected to experience a severe slowdown. D&T say the US could fall into outright recession, while Japan and much of Asia - already in recession - has no prospect of immediate respite. The company adds that in the euro-zone, there are signs of "acute economic weakness" and although the British economy has been relatively robust, "there is no doubt that a severe slowdown is in train here also". However, D&T's economic adviser Roger Bootle argues that although the September 11 attacks will be widely blamed for this, the world has been on course for a serious downturn anyway. He said: "While the aftermath of the September outrages will, of course, be negative, the lesson of history is that the economic significance of non- economic events is often exaggerated at the time. "The upshot is that we believe that the world is set for a period of very low inflation, low interest rates and weak growth - but little of this will be due to the events of 11 September." A separate survey by Pricewaterhouse Coopers also predicts the UK downturn will be much less severe than in the US, Japan and Germany. I It says initial estimates of the economic impact of the terrorist attacks suggest that "unless global conditions deteriorate dramatically, the UK as a whole should avoid recession over the next year". It estimates economic growth will decelerate from 3% last year to around 2% in 2001 and 2001. 29th October 2001 |
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