UN Analysts Forecast World Economy Growth by 2.75 %, Russian Economy by 4 % This Year

UN analysts forecast that the world economy will grow at an average rate of 2. 75 % this year, says UN analysts' report circulated in Austria on Friday.

Last year the economy gained only 1.7 %.

According to UN analysts, the Russian GDP will increase by 4 % in 2003 and the growth of that in East European counties will be slightly less.

Chinese GDP is forecast to grow by 7 %, in Latin America - by 2.3 %, in South Eastern Asia by 5.6 %, in Africa - by 4 %.

According to UN forecasts, the US GDP may grow by 3 %, that of EU countries may soar at an average rate of 2.1 %, and that of Japan will gain 1 %.

Analysts believe that the world economic recovery will be restrained by various uncertainty factors in the first six months, but in the second half of the year the economy will grow at the forecast rates.

According to the report, used production facilities, excessively priced products and loss of consumers' confidence can inhibit the world economy growth. Basic economic index fluctuations can hinder the growth or trigger stagnation, according to UN analysts.

Experts think that the growth will be hampered by the US trade deficit and the lowering dollar against the euro and other hard currencies, in particular, the Japanese yen.

The economic upturn is greatly doubtful because of the looming US-led attack against Iraq. The report also reads that a war in Iraq can deal a heavy blow at the world economy.