LOC17:00
14:00 GMT
official
GENEVA, Sept 5 (KUNA) -- A new report says that oil prices on the increase
have not affected negatively global economic growth, on the contrary.
Director, Division on Globalization and Development Strategies, UNCTAD,
Heiner Flassbeck told the Kuwait News Agency (KUNA), that the interesting
thing is that high oil prices led to a commodity price boom with revenues that
are flowing back into the world economy, the developing and the developed
economies alike.
He added that this is not like the situation in the 70s, this time it is
recycled directly to the goods market all over the world, and this is positive
for the developing world and for the global economy instead of having a new
shock, because all the negative second ground effects did not appear this time.
According to the report released today by the UN Conference for Trade and
Development (UNCTAD), the world economy will maintain its momentum and expand
for a fifth consecutive year with estimated overall output growth of 3.4 per
cent in 2007.
UNCTAD's Trade and Development report says that developing countries,
including many of the poorest will continue to benefit from strong demand for
primary commodities.
This positive trend, says the report, since 2003 has enabled many
developing countries in all regions to strengthen their external and fiscal
balances, and to increase investments in their economies.
The report finds that per capita gross domestic product (GDP) in developing
countries increased by almost 30 per cent between 2003 and 2007. (end)
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KUNA 051700 Sep 07NNNN