U.N. Sees Slowed Global Growth This Year

The global slowdown triggered by a slumping U.S. economy is expected to push world economic growth down to 2.4% this year, with at best a modest recovery going into 2002, according to a U.N. report based on research from more than 60 nations. Three years after the 1997-98 international financial crisis, the U.N. Global Economic Outlook said the world economy is experiencing another period of turbulence that is hitting hardest at countries most closely tied to the U.S. economy: Mexico, Canada and some East Asian nations, including Malaysia and Thailand. The U.N. report predicts economic growth will fall from 4% last year to about 2.4% this year, rebounding to about 3% next year, assuming a recovery in the U.S. The report sees no recession for the U.S. but said economic growth for the first half of 2001 might be flat. An expected rebound in the second half should boost U.S. economic growth by 1.5%, down sharply from the 5% growth rate in 2000. The other two global economic powerhouses--Japan and Europe--don’t have the strength to make up for the U.S. slowdown, the panel said. Japan’s economy probably will grow by less than 1% this year, it said.