WORLD

World Bank signs with Vietnam The World Bank signed its largest-ever set of credit agreements with Vietnam, totaling $ 526 million and aimed at restoring faster economic growth and poverty reduction. The credits comprise a Poverty Reduction Support Credit (PRSC) of $ 250 million; $ 110 million for a project for transportation and flood prevention in the Mekong Delta region, and $ 166 million for an environmental sanitation project in Ho Chi Minh City. World Bank vice president Jamil Kassum, who signed the credit agreements with Vietnam’s central bank governor Le Duc Thuy, said the credits brought the World Bank’s lending to Vietnam for the year to $ 629 million, the highest ever to the country in a single year. British GDP growth slowed British economic growth slowed to a rate of 2.1 percent over 12 months in the second quarter, from 2.7 percent the previous quarter, official figures showed recently. Gross domestic product grew by 0.3 percent in the April-June period from the first quarter of 2001, the lowest level since the last quarter of 1998, the Office for National Statistics said in a provisional estimate to be revised next month. The figures tallied with the expectations of analysts, who had predicted the slowdown due to sluggish economic conditions in the United States and Europe. Yet although growth has slowed, the British economy remains relatively robust given the harsh global economic climate. The US economic slowdown is however likely to crimp growth further in the third quarter, economists warn. "Britain is nowhere near a recession," said Barclays stockbrokers economist Hilary Cook. "The fact is that the UK economy is still very strong," she said, adding that the recent outbreak of foot and mouth disease had probably knocked 0.3 percentage points off economic growth. "There was some anecdotal evidence that the champagne tents (at summer sporting events) are much quieter than normal which must mean a recession is coming," Cook said. "But there seemed to be plenty going down at Henley (rowing regatta)." And although growth is likely to cool further in the third quarter of the year because the British economy lags behind the sickly US economy, low interest rates should help to ease the pain, she said. Italian inflation dips to 2.9% Italian inflation dipped in July to 2.9 percent on a sliding 12 month basis, down from 3.0 percent in June, the national statistics institute Instant said recently. The slowing in inflation in July was due mainly to a fall of oil prices which offset high prices for food and tourism related products and services. Despite the slight fall in the 12 mont figure, the national consumer price index rose 0.1 percent in July from the figure for June when it had shown a record increase of 0.3 percent in June because of rising hotel and food prices. Italy is a member of the euro zone European Central Bank has set a medium-term upper limit of two percent for inflation in the zone.