The world economy [June 2008]

Global growth is forecast to slow to 4.2 per cent in 2008 (from 4.7 per cent in 2007) but this better than expected and performance is driven largely by the Asian economies. US growth is forecast to slow to 1.3 per cent this year (compared to 2.2 per cent last year) while in the Euro Area, growth is forecast to be only 1.5 per cent in 2008 after growth of 2.6 per cent in 2007. China and India are forecast to continue to grow rapidly in 2008 (10.4 per cent in China). Japan and the rest of Asia are also doing well mainly due to the stimulus of Chinese demand and trade.