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Global Economy Growing Quickly, say Analysts - 2004-01-19

A group of analysts says the global economy is growing quickly, and will expand at a strong 4.3 percent in 2004.

The Economist Intelligence Unit, part of the same company that publishes the Economist magazine, says global growth will slow to a still-robust 4.0 percent in 2005.

The analysts say the growth is a bit faster than last year's which was 3.5 percent.

The Economist Intelligence Unit says tax cuts and low interest rates in the United States and elsewhere have helped stimulate economic growth. But these experts express some concern about how the economy will perform in the future when the impact of the tax cuts fades and interest rates rise.

They also forecast that the dollar will weaken further, so that it will cost $1.35 to buy a single euro this year and $1.38 in 2005.

The euro is currently trading at just under $1.24.