MIDEAST UPDATE
The European Community’s top competition policy official said the EC would consider short-term deals between European airlines to pool service on routes where travel has been steeply reduced by the war.
* London-based United Bank of Kuwait PLC said its profits rose in 1990 despite costs associated with Iraq’s invasion of Kuwait in August.
* An arsonist set fire Thursday to the cloakroom of an Esso Oil refinery in Rouen, France, despite heavy surveillance of such facilities by police worried about terrorist attacks. No arrests were reported.
An Estimate of the War’s Economic Impact
The length of the Gulf War will determine how it affects the U.S. economy, according to estimates by Nancy J. Kimmelman, chief economist at Thomson Financial Networks in Boston.
1-month war 3-month war 6-month war Total cost $15 billion $58.5 billion $144 billion Impact on gross national product: in dollars $1.6 billion $9.5 billion $15.5 billion as a percentage 0.1% 0.3% 0.6% Change in unemployment rate none -0.2% -0.4% Change in consumer price index none 0.1% 0.2%
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