The report War and the World Economy claims that in the most likeliest scenario – a short conflict with regime change – the US economy could grow by as much as 2.9% in 2003.
However, under the worst-case scenario, where the conflict were to escalate dramatically, the US economy could shrink by as much as 2% during the year.
In this case, the most adversely affected, according to the IoD, would be Japanese and euro-zone economies as they have ‘less scope to ease monetary and fiscal policy in response to any deterioration in their economy’.
Graeme Leach, chief economist at the IoD, commented ‘There are tremendous military, political and economic uncertainties facing the US and world economy this year.’
Does Darwin's theory apply to taxation? Colin ponders...
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states
Accountancy watchdog the FRC has dropped its investigation into the former chief financial officer of Tesco, nearly two years after the supermarket was engulfed in an accounting scandal
Colin imagines how Apple's logo might change in the wake of the EC's ruling over its Irish tax arrangements