RBA's McKibbin sees long slowdown

The U.S.-led war in Iraq will drain the world economy for years to come, sapping income from a wide range of countries, Australian central bank board member Warwick McKibbin has said.

Source: Reuters

The war could milk US$240 billion from the global economy in 2003 alone and world growth is likely to come in below two percent this year, the Reserve Bank of Australia board member Warwick McKibbin told Reuters in a telephone interview.

In a worst case scenario, the conflict could cost US$3.5 trill

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