The terrorist attacks and subsequent U.S.-led military response launched in October added to uncertainty about the health of the global economy, but growth forecasts had already been reduced following the Sept. 11 terrorist attacks in the United States.
The World Bank had trimmed its 2002 forecast for growth in industrialized countries to 1%-1.5% from an earlier estimate of 2.2%. Meanwhile, U.S. Treasury Secretary Paul O'Neill said Bush administration proposals for stimulating the U.S. economy should bring a rebound in growth next year. The stimulus program includes proposals for at least $60 billion in tax relief to consumers.