October 20, 2001	Saturday	Shaba'an 2, 1422

KUALA LUMPUR, Oct 19: Malaysia has revised downwards its 2001 gross domestic product (GDP) growth forecast for a second time, to 1.0-2.0 per cent, because of the “greater-than-expected” slowdown in the world economy, Prime Minister Mahathir Mohamad said on Friday.

Mahathir, who is also finance minister, said in a preface to the ministry’s Economic Report 2001/2002 that the September 11 attacks on the Unites States had a “substantial initial impact” on already difficult global economic conditions.

In March, the government cut its growth estimate from 7.0 per cent to 5.0-6.0 per cent after strong expansion of 8.3 per cent in 2000.

With the possibility of the United States going into recession and the subsequent contagion impact on the rest of the world, the effects could worsen the situation in Malaysia, Mahathir said.—AFP