GENEVA — The U.S. economy is projected to grow by 2.6 percent in 2003, up from this year’s projected level of 2.4 percent, according to a report by a United Nations economic agency.
But the study by the 55-member country U.N. Economic Commission for Europe, which includes the U.S., warned there are severalrisks to the outlook, linked to the legacy of the boom years. The levels of private debt accumulated during the second half of the Nineties "will have to be reduced sooner or later," it said.
As a result, the report said U.S. households may be compelled to make a larger increase in their savings than is currently forecasted, "with concomitant adverse effects on consumer demand, business profits and fixed investment."
For the 12 "Euro zone" economies, the agency forecasted growth next year to reach 1.9 percent, up from this year’s 0.9 percent gain. It urged a more expansionary monetary policy to offset the dampening effects of the appreciation of the euro and the fall in equity prices.
The agency said the drop of the dollar in foreign exchange markets appears to have been caused "by doubts about the relative strength of the U.S. recovery and concerns about business profitability, as well as corporate governance scandals."
The study said concerns about the possibility of a military conflict with Iraq may have also played a role. However, ECE economists caution that "in view of the domestic and external imbalances in the U.S. economy, there is the dilemma that any domestic demand-led recovery would risk being short-lived because of the adverse implications for the external deficit and increased risk that foreign investors would be unwilling to continue to finance it."
Brigita Schmognerova, ECE chief, said: "The longer the external adjustment is delayed, the greater the possibility of disruptive changes in capital flows."
@chanel and @pharrell dropped what’s being dubbed as the world’s most exclusive sneakers yesterday. The Adidas Originals NMD Hu, which Williams designed in collaboration with Chanel and @adidasoriginals, has a waiting list of over 120K people who pre-registered online at chanelatcolette.fr –– and only 500 pairs are on sale. The singer predicted the resale value of the shoes could reach $40K. Read the full interview on WWD.com. Link in bio. #wwdfashion
@imanshumpert is diving deeper into his creative endeavors and relaunching his clothing line, Post 90s, and is helping to raise money for the hurricane victims in St. Maarten with a jersey he’s designed with his brother. The Cleveland Cavaliers player talked to WWD about kneeling during the national anthem, working with fashion brands and how he wants to be more than an @nba player. Read the interview on WWD.com #wwdfashion (📷: George Chinese)
Not only does #TheProfit return to CNBC tonight, but @marcuslemonis has launched @shopmarcus, a new shopping and lifestyle retail experience in Aspen and Chicago, with more locations to come. The retail stores offer in-store stylists and a variety of contemporary womenswear selections.
“It’s life, I’m going to face it,” @mingxi11 sighed. “I fell, but you know, I think the most important thing is that I get back up. I had the love, the help from my sister — the girl next to me Gizele [Oliveira] — she’s so nice. When I went backstage everybody was trying to comfort me like ‘Oh Ming, it’s OK.’ I’m really, really touched. I think it’s them who gave me the courage to go back on stage for the finale,” Xi told WWD of her fall at the @victoriassecret fashion show. (📷: David Fisher) #wwdfashion #vsfashionshow #victoriassecret
@louisvuitton tapped @therealpeterlindbergh for its latest city-centric photo book, which is part of a series called Fashion Eye. The primarily black and white book captures the spirit of Berlin in 57 images shot between 1989 and 2019. “Berlin is an inspiration for me, more than a city. I mean @millajovovich is simply Berlin!” said Lindbergh. #wwdfashion
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@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)