Executive Directors noted that the global recovery remains solid, with economic growth in 2004 projected to reach its highest rate in nearly 30 years. The expansion is underpinned by continued accommodative macroeconomic policies, rising corporate profitability, and wealth effects from rising equity and house prices. It has become increasingly broad-based geographically, although some regions continue to grow more vigorously than others. Global growth remains driven by the United States, with strong support from Asia, particularly China and Japan. Activity in Latin America and some other emerging markets has also picked up strongly, while the outlook for Africa has improved. There is growing economic momentum in the euro area, although the strength of the upturn varies across countries and in some cases is heavily dependent on external demand.
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