capital market review global securities commission annual report 2002 review1 2 economic environment the economy rebounded from downturn experienced in 2001 but pace of recovery turned out to be slower than anticipated charts 1 4 among challenges facing were lower expected earnings us corporate governance crisis as well heightened geopolitical tensions amid fears an impending led war on iraq this climate uncertainty equity prices declined investors shifted equities into safety government bonds and other safe haven investments however despite signs declining risk appetite contagion emerging markets was limited with flight brazil mid year having relatively little impact chart world consumer price growth source international monetary fund y ear change 3 0 12 8 1998 1999 2000 2002f 2003f advanced economies lhs developing asia rhs countries semiconductor sales industry association 60 20 40 2003f2002f2001200019991998
