World Economy 'Teetering on the Brink' But Still Growing

More gloom and doom from our friends at the UN.

A group that does nothing, produces nothing and sucks money out of our wallets nonstop is warning us of economic peril ahead, claiming the world economy is only expected to grow at a rate of 1.8% this year and 2.1% in 2009. Clearly that's not enough to sustain all the money they want to grub from the United States.

On the upside, I guess we can put that global recession on hold for a bit.

Naturally, they blame it all on he world's greatest economy.

The world economy is "teetering on the brink" of a severe downturn and is expected to grow only 1.8 percent in 2008, the United Nations said in its mid-year economic projections Thursday.

That's down from a global growth rate of 3.8 percent in 2007, and the downturn is expected to continue with only a slightly higher growth of 2.1 percent in 2009, the U.N. report said.

The mid-year update of the U.N. World Economic Situation and Prospects 2008 blamed the downturn on further deterioration in the U.S. housing and financial sectors in the first quarter, which is expected to "continue to be a major drag for the world economy extending into 2009."

But the U.N. said developing countries will suffer as badly: They should grow by 5 percent this year and 4.8 percent next year, compared to a robust 7.3 percent in 2007, the report said.

The U.N. economists said the deepening credit crisis in major market economies triggered by the U.S.-led slump in housing prices, the declining value of the U.S. dollar, persistent global imbalances and soaring oil and commodity prices pose considerable risks to economic growth in both developed and developing countries.

Despite the hysteria, the USA is still No. 1, although even that news is portrayed negatively.

The United States topped world competitiveness rankings for the 15th straight year, but its economy is showing the same signs of weakness that sank booming Japan in the early 1990s, according to an annual survey released Thursday.

No surprise to see Venezuela pulling up the rear.

Venezuela was ranked last for the third year in a row, immediately preceded by Ukraine, South Africa, Argentina and Indonesia.