The US economy withstood last year's terrorist strikes better than many experts had anticipated, averting a feared downward spiral that could have dragged down the global economy, economists say, as Americans today marked the first anniversary of the attacks on its soil.
Although the US emergence from recession remains fragile and fraught with risks, analysts say the economy has shown its mettle by coming out of its downturn while absorbing the massive impact of the terrorist attacks.
Americans have retrenched to an extent since the attacks, but some of the changes have been beneficial to the overall economy, including increased investment in homes and cars, encouraged by lower interest rates.
With the US economy at a virtual standstill in the wake of September 11, gross domestic product declined at a 0.3% pace - the third quarter of a moderate downturn, according to recently revised US figures.
The economy bounced back in the October-December 2001 quarter, expanding at a 2.7% rate, and then 5% in the first quarter of 2002, although second-quarter growth cooled to a 1.1% pace.
Some conomists credit the US car industry with helping the economy avert a deeper decline by adopting what appeared to be a risky strategy of an aggressive marketing campaign, helped by zero per cent financing, less than two weeks after the attacks.
Although the US car industry cut tens of thousands of jobs last year amid slumping sales, the strategy first adopted by General Motors and followed by most of its rivals after the September attacks has boosted sales this year to near-record levels and averted more job losses that could have crushed consumer activity.
