WEF starts proceedings
Davos: At the World Economic Forum, the annual meeting of 2,500 chief executives, politicians, entertainers and others, concerns were expressed about the rising euro and weakening dollar and some amazement at China's rapid growth as it overpowers Asia and challenges the United States.

As Beijing prepares for the 2008 Summer Games, its economy has gained steam, growing at 9.5 per cent in 2004 and expected to meet and likely surpass that figure for 2005.

According to Stephen S Roach, chief economist for Morgan Stanley USA, last year China consumed 25 to 30 per cent of most major industrial materials, especially metals. He also said China was responsible for 43 per cent of the world's consumption of concrete.

Some noted the rise of countries, that just decades ago were unthinkable as investment opportunities.
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UN report expresses concern at weak US dollar
United Nations: The world economy grew by four per cent last year, but a rapidly falling US dollar poses a danger to economic stability worldwide, a United Nations report has said.

The UN Department of Economic and Social Affairs (DESA) in a report said cyclical economic recovery reached a peak in 2004, especially for developing countries.

"The global imbalance is between consumption and debt in the United States and ballooning surpluses in many US trading partners. Currency changes by themselves, especially bilateral currency manipulation, will not resolve the problem," it adds.

Gross world product increased by four per cent in 2004 and could rise by 3.25 per cent this year, unless there is a negative market reaction to the falling dollar and rising US deficit, it said.

Oil prices would be higher than average but lower than last year's peak, UN Under Secretary General for Economic and Social Affairs Josi Antonio Ocampo told reporters.
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Five Latin American countries protest EU banana plan
Quito: Presidents and representatives from seven Latin American banana-producing nations have issued a written objection to a European Union plan to impose a 300 US dollar per ton tariff on their crops starting in 2006.

The presidents of Colombia, Costa Rica, Nicaragua, Panama and Ecuador, as well as representatives from the Honduras and Guatemala signed the document. The EU has said the new duty is meant to prevent producers in former African and Caribbean colonies from losing business to larger growers in Latin America, which sell about 3 million metric tons of the crop to the EU annually.

The Latin American producers maintained the European restrictions would run contrary to World Trade Organisation rulings against preferential banana import rules.
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