Economic Survey 2002

The global output in 2001 is estimated to have recorded the lowest growth since 1991. This was against a background of declining equity prices, lagged impact of the rise in oil prices, contraction of World Trade and fall in consumer and business confidence. Virtually all OECD countries recorded slower growths in 2001 compared to 2000. The state of insecurity caused by the terrorists attack on 11th September 2001 in USA, substantially disrupted the production and demand particularly for air travel, tourism and financial services across economies. China and Russia were exceptions to the widespread slowdown in economic performance despite the weak world economy. Low coffee prices in Colombia, foot-and-mouth disease in Uruguay, energy crisis in Brazil and economic difficulties in Argentina worsened the economic performance in South America. In Africa, other than the global developments, political uncertainties and instability, high external debt servicing and weak governance were among the major concerns. Governments in the Africa resolved to embark on a New Partnership for Africa Development (NEPAD) in recognition to these challenges.