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Sharp falls in the returns paid on savings accounts will also have an impact, it is claimed.
Sharp falls in the major American stock indexes in 1997 and 1998 led the rest of the world lower.
Research has shown sharp falls in the street price of cocaine, which has slumped from £70 a gram in 2000 to a current price of about £40 a gram.
Domestic demand accounts for two-thirds of GDP, so though Indonesia remains vulnerable to sharp falls in the prices of commodities such as coal and palm oil, collapsing exports will not hit it as hard as its neighbours.
The burst of strong growth in American productivity after 1995 was spurred by advances in the semiconductor industry, which led to sharp falls in the price of computing power.
In Europe, futures trade pointed to sharp falls in the main markets with the FTSE100 predicted to be down 40 points or around 0.6% at the open and the Dax in Germany down 1%.
Similar(34)
"The sharp falls in manufacturing and exports suggest that the economy is entering tougher times.
Its effects can be seen in the sharp falls in mortgage approvals in both America and Britain.
A sharp fall in the number of new infections followed.
They will also benefit from the sharp fall in the price of oil.
Recent figures from the Bank of England showed a sharp fall in the amount borrowed by businesses.
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