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| December 30, 2002 | Thomas, Rich; Yourish, Karen; Bahari, Maziar; Webb, Amy L.; Hosenball, Mark; Hirsh, Michael; Soloway, Colin; Flynn, Emily; Gates, David; Ness, John; Johnson, Scott | COPYRIGHT 2002 Newsweek, Inc. All rights reserved. Any reuse, distribution or alteration without express written permission of Newsweek is prohibited. For permission: www.newsweek.com. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

ECONOMICS

New Year, New Tears?

After another grim year, everyone from America to Europe to Asia is hoping for an economic rebound in 2003. Unfortunately, the global economy looks to be two-faced next year: Europe, Japan and much of South America will grimace from stagnation and recession. The other half of the world will sport the sunniest smiles since the boom went bust in the spring of 2000.

Why the schizoid outlook? "Structural divergencies," explains Jean- Philippe Cotis, chief economist for the Organization for Economic Cooperation and Development. He's referring to the high taxes and no- layoff job protections in slowpoke economies like ...

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