The world economy is booming, largely led by strong growth in China (with expected GDP growth of 9.1% this year (NIESR, 2004)) whilst the US economy (OEF, 2004a), is expected to have grown by 3.6% in 2004 (Cotis, 2004). Although growth slowed in the third quarter of 2004, subdued by the effects of the high price of oil, as a result of the good underlying employment prospects and favourable monetary conditions, above-trend GDP growth is again forecast for 2005 (2.9%) and 2006 (3.1%)
