Sluggish US economy a further drag on world bourses

STOCK markets across the world were dealt another setback when fears of war between US and Iraq were compounded by news yesterday that the US economy grew at 0.7% in the final quarter of last year, its slowest growth rate since the third quarter of 2000. 

The US economy contracted during the first three quarters of 2001, and growth in the world's largest economy during the third quarter was 4%.