The global economy is expected to grow slowly by 3.3 percent in 2006 as compared with the 4 percent 2004, said the World Economic and Prospect 2006 report jointly released by UN Department of Economic and Science Affairs, UN Conference on Trade and Development (UNCTAD) and UN Economic Commission.

The report said the reason for slower economic growth worldwide lies in the completion of global economic recovery and the influence of natural disasters around the world. Looking ahead, the world economy will be affected by oil price hike, bird flu as well as drop of house price. However, the biggest threat rests with the severe global financial imbalance, which is still on the rise.

Thanks to some favourable international economic environment, such as low interest rates, low inflation rate as well strong demand on commodities, the economy in developing countries will maintain the good momentum of rapid development of 5.5 percent, forming a sharp contract with the 2.5 percent of developed countries. Particularly, the growth rate of the least developed countries could reach 6.6 percent, the highest in the past ten years.

By analysing the growth feature in the developing countries, the report pointed out that the rapid economic growth in China and India boosted the growth of demand on raw materials and price of commodities, benefiting many developing countries which rely on raw material exportation and balancing the distribution of economic growth in developing countries.

By People's Daily Online