The United Nations Conference on Trade and Development (UNCTAD) released its Trade and Development Report 2005 on Sept.8 in Xiamen where the ninth China International Fair for Investment and Trade is held. The report said last year the world economy grew the fastest since 2000 at a rate of nearly 4 percent. This economic expansion has sustained into this year. However, it predicted that the speed of this year would slow down to 3 percent.

Boosted by the fast rise of China and India, the East and South Asia has become a new growth pole of the world economy, which brings opportunities to developing countries. It believes that developing countries as a whole would enjoy 5 to 5.5 percent growth for their economy in 2005.

UNCTAD has noticed the unbalanced current account. The US trade deficit is equivalent to two-thirds of the global trade surplus, putting countries on the surplus side under mounting pressure for currency revaluation.

To address this dilemma, UNCTAD proposed a multi-lateral foreign exchange rate system which would take care of small, open and less developed economies. That, the UNCATD said, would secure the progress that has been made in implementing the Millennium Development Goal.

For the correction of the unbalance, it is necessary, UNCTAD warned, to avoid depression of developed economies whose growth relies too much on the US economy on one hand, and any significant slowdown of the developing countries on the other.

By People's Daily Online