The U.S. economy remains the main engine of global economic growth, but the dynamic growth of China, India and a few other large developing economies is becoming increasingly important, a newly released UN annual report said Tuesday.

Economic growth slowed down in most of the developed economies during 2005, with no recovery expected in 2006, reported the World Economic Situation and Prospects 2006.

Slower growth in the Unites States, stagnation in Europe and a modest return to expansion in Japan contrast with only a slight fall-off in strong economic performance by the developing countries, the report noted.

According to the report, the growth rate will be around 3.1 percent in the United States, while lackluster performance will still prevail in Europe with growth reaching a meagre 2.1 percent in 2006.

The recovery in Japan is expected to continue, albeit at a very modest pace of around two percent, it added.

Meanwhile, benefiting from a favorable international environment of low interest rates, low inflation and strong commodity demand, the developing world is projected to grow slightly by more than 5.5 percent in 2006, following an estimated 5.7 percent growth in 2005, the report observed.

"Growing at 6.6 percent, the (50) least developed countries are faring even better, reaching the fastest average growth they have had for decades," the report said.

The report also stressed that East Asia's GDP growth is estimated to have reached 6.7 percent in 2005, supported largely by China, whose rate of GDP growth reached 9.2 percent in the year.

As in 2005, China is expected to drive economic growth in East Asia as well as that of the global economy in 2006, the report said.

"The GDP growth of China, however, is anticipated to slow down but still remain robust at around 8.3 percent," the report observed.

Source: Xinhua