UNIT­ED NA­TIONS–Glob­al eco­nom­ic growth is pro­ject­ed to gain slow mo­men­tum for the rest of the year, a Unit­ed Na­tions eco­nom­ic fore­cast said.The UN's De­vel­op­ment Pol­i­cy and Analy­sis Di­vi­sion re­leased a mid-year up­date fore­cast­ing world gross prod­uct growth at 2.3 per cent in 2013, "a sub­dued pace" char­ac­terised by sub-par ex­pan­sion and weak em­ploy­ment prospects. The UN fore­cast im­prov­ing growth in 2014 at 3.1 per cent.

"In the Unit­ed States, the avoid­ance of the fis­cal cliff and the ex­pan­sion of mon­e­tary eas­ing, along with a con­tin­ued re­cov­ery in the hous­ing sec­tor, have im­proved growth prospects," the fore­cast said, but "the au­to­mat­ic spend­ing cuts and un­cer­tain­ties as­so­ci­at­ed with bud­get is­sues will con­tin­ue to weigh on ag­gre­gate de­mand." US growth was fore­cast at 1.9 per cent in 2013, down from last year's 2.2 per cent. The re­port fore­cast US growth to rise to 2.6 per cent in 2014.

In Eu­rope, the fore­cast said, "the re­al econ­o­my is held back by aus­ter­i­ty pro­grammes, weak bank lend­ing and con­tin­ued un­cer­tain­ty, and on­ly a very grad­ual re­cov­ery is ex­pect­ed as these fac­tors di­min­ish."

AP