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Rising oil prices did not affect global economic growth, says UNCTAD
Economics    9/5/2007 5:00:00 PM
 
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) nb.bz.
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