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An overview of the world economic situation and prospects, this thematic report from the United Nations Development Policy and Analysis Division focuses on 2004.

Many of the forces responsible for dramatic growth in the previous decade are now absent or not strong enough to produce such robust performance. While global trade is projected by to grow, it is unlikely that the buoyancy of pre-2000 years will be repeated, especially given setbacks in the Doha round of trade negotiations. The recovery of foreign direct investment will be similarly subdued, as will rebounding investment in information technologies. The dampening effects of geopolitical tensions and threats of international terrorism are more prevalent than in the years immediately before 2001.Therefore, the report urges careful measures to nurture the recovery and avoid a precipitous unwinding of international imbalances.