High energy prices are slowing the global economy, the UN says

High energy prices and rising interest rates will substantially slow the global economy this year, the United Nations has warned.

Worldwide growth will slow to 3% in 2005, down from 2004's 4.1%, according to the report from the UN's Department of Economic & Social Affairs (UNDESA).

Industrialised nations will be the worst affected, said the report.

Developing countries will generally see better growth thanks to strong demand for their minerals and farm goods.

The report forecasts that growth in western Europe will slow to about 2% in 2005, down from 2.2% in 2004.

US growth is expected to ease to 3% from 4.4%, while developing nation economies are set to grow by 5% in 2005, the same rate as last year.

The Chinese economy is expected to grow at 9% in 2005, as its economy continues to grow strongly, while Africa as a whole will see growth of more than 5%.

"All developing regions are performing well by their respective standards of the past few decades," the UNDESA report said.  

(BBC)

substantially : to a great extent or degree（充分地）