WASHINGTON, April 19 (UPI) -- The World Bank, noting Japan's higher corporate capital spending, Monday revised its 2004 economic growth rate forecast to 3.1 from the earlier 1.3 percent.
But the Washington-based international lending institution also said it expects the growth rate to slow to 1.4 percent in 2005, Kyodo news agency reported.
In its annual Global Development Finance report, the bank predicted the world economy will expand 3.7 percent in 2004, up from September's forecast of 3 percent. For next year, the growth was estimated at 3.1 percent.
The bank forecast the U.S. economy will expand 4.6 percent this year, up from September's estimate of 3.4 percent. For next year, the rate was predicted at 3.2 percent.
Growth in the euro area is estimated to rise 1.7 percent this year, unchanged from the previous forecast, and 2.3 percent in 2005.
For Japan, the bank also said growth is increasingly tied to import demand in China and other developing countries in Asia.
