Global boom winding down, warns UN

The world economy expanded by 4% last year, up from 2.8% in 2003. But a falling US dollar, continuing rise in interest rates and sluggish worldwide job growth are expected to reduce growth to 3.25% this year, according to a report titled “The World Economic Situation and Prospects” released recently by the United Nations.

At the annual launch of the report, UN under secretary General Jose Antonio Ocampo predicted that “world trade and growth will moderate, the cyclical peak seems to have been reached in 2004″. International trade grew at an estimated 10.5% in volume terms in 2004, up from 6.2% in the previous year, with China and India leading the way. Trade is expected to slow to 8% in 2005.

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