This disappointing performance was the result of an unfortunate combination of adverse supply and demand shocks, originating to a large extent from developments in the external environment. These included the sharp increase in oil prices in 2000 and early 2001, the slowdown in the US economy and the terrorist attacks in the United States.
Taken together, these adverse shocks led to a protracted weakening in demand – from both the external and the domestic side – and to considerable uncertainty with regard to the outlook for growth.