Economy to slow down worldwide, U.N. says

After relatively steady growth over 2007, the worldwide economy seems destined for a severe slowdown in the coming period. According to the midyear economic projections of the United Nations, the world economy is contracting. The New York-based international organization cited expectations of only 1.8% growth for 2008, compared with growth of 3.8% in 2007. Economic growth rates for developing countries are projected to be 5% for this year and 4.8% next year, following healthier growth of 7.3% over 2007. Officials at the U.N. cited volatile energy costs, a housing market not expected to stabilize until 2009 and poor economic performance in the United States in their pessimistic projections. The U.N. maintains that developments in the United States will be a determining factor in the economic future of the rest of the world.