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4/12/06

WTO report - World economy expected to grow by 3.5 percent in 2006

For the full report go to WTO or click on this link

WTO report - World economy expected to grow by 3.5 percent in 2006

The world economy is projected to grow by 3.5 percent in 2006 despite uncertainties at the beginning of the year, the World Trade Organization (WTO) said on Tuesday in its annual report. There are a number of uncertainties on the horizon for 2006, with signs of a stronger investment climate mixed with fragile prospects for consumption and employment, particularly in Europe, according to the World Trade 2005, Prospects for 2006 report. In developed countries, the broadly improved financial situation of the corporate sector and the rise in stock markets are indicators suggesting that the long awaited recovery of investment in Europe will eventually materialize and trigger broader economic growth. However, the recovery of private consumption will remain fragile if the employment situation does not improve and energy costs continue to rise, the report says.

While the U.S. economy is expected to grow slightly slower compared with the previous year, its expansion rate could still reach 3 percent to 3.5 percent in 2006, ahead of those in the European Union and Japan.

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