Forecasts of worldwide economic growth have been revised downward recently-which is not surprising, as U.S. economic fortunes heavily impact those of other industrialized countries. With international trade an ever-more important part of economic demand for products from Asia, Europe and South America, the prospect of a severe American slowdown has a global chilling effect.
A survey of economic forecasters conducted monthly by The Economist documents conservative expectations for 2001. Between December and January, the survey showed forecasters in 14 of 15 countries drastically lowering expected growth in gross domestic product (GDP); only Great Britain was spared. Overall, Western and Central Europe show a GDP drop of about 1 percent. Japan is expected to be the most sluggish economy.
GDP growth forecasts (Change in inflation adjusted GDP)
| 2000 | 2001 | |
|---|---|---|
|
Australia |
4.4% |
3.3% |
|
Austria |
3.4 |
2.5 |
|
Canada |
4.9 |
3.0 |
|
Denmark |
2.6 |
2.1 |
|
France |
3.2 |
2.7 |
|
Germany |
3.1 |
2.5 |
|
Great Britain |
3.0 |
2.6 |
|
Italy |
2.6 |
2.2 |
|
Japan |
1.8 |
1.6 |
|
Netherlands |
3.9 |
3.1 |
|
Spain |
4.0 |
3.2 |
|
Sweden |
4.0 |
3.4 |
|
Switzerland |
3.4 |
2.3 |
|
United States |
5.1 |
2.3 |
Source: The Economist
