The world economy [April 2007]

World economy growth remains relatively strong as we having been forecasting for some time, albeit from time-to- time there has been a slight moderation in growth. The third quarter moderation does not appear to have impacted on fourth quarter growth; certainly not in the major economies of the world. There is robust growth in the US, China, India and in the emerging Asian economies. Inflation in most countries has moderated in late 2006 as energy prices have declined significantly since September 2006. Inflation remained relatively high in early 2007 however, as the effects from falling energy prices diminished. Survey evidence across the world suggests that there will be relatively strong growth in 2007