The world economy is in malaise, growth will remain sluggish and the Millennium Development Goals for relieving poverty are unlikely to be met, the UN says.

A negative picture of the global economy - with too many workers chasing too few jobs and too many goods chasing too few buyers - was painted by the Trade and Development Report 2003.

It warned of inevitable adverse consequences for "even the most resilient" developing countries and accepted there was a growing consensus that the Millennium Development Goals of halving extreme poverty by 2015 were impossible to meet.

The report said: "This is an anxious time for the global economy."

"The long-anticipated rebound in the United States continues to be delayed and there are concerns that imbalances and excesses . . . could result in a long period of erratic and sluggish growth."

The UN Conference of Trade and Development report notes that, in spite of the sizeable interest rate cuts by the Federal Reserve, US investment had still not recovered as expected and the labour market was in "its worst shape for some time".

Meanwhile, Europe is set to repeat a disappointing 2003 growth rate of about 1 per cent.

Friday October 03, 2003