Logo of the World Economic Forum. The annual Davos gathering of the world's political and business elite opens Wednesday with the already gloomy atmosphere further soured by near-panic conditions on world stock markets.(Photo: CCTV/AFP) Photo Gallery>>>

    DAVOS, Switzerland, Jan. 27 (Xinhua) -- Global economic uncertainties and development issues have dominated the five-day World Economic Forum (WEF) Annual Meeting, with political and business leaders divided over the prospects for a slowdown in the U.S. economy.

    U.S. ECONOMY

    The Davos forum, which concluded Sunday, was clouded by mounting concerns over the U.S. economic outlook in the aftermath of the sub-prime mortgage crisis. Some economists even warned that the biggest economy is heading for a recession.

    Dominique Strauss-Kahn, managing director of the International Monetary Fund (IMF), predicted a serious slowdown in the U.S. economy. "Whatever the answer is on a recession, what is clear is there will be a serious slowdown" in the United States, he told a panel discussion on the economic outlook this year.

    Calling for a serious response to the situation, Strauss-Kahn said the IMF is scheduled to update its economic forecast next week, and it is certain to have a lower growth figure for the United States.

    World Trade Organization chief Pascal Lamy said a U.S. recession risk is obvious. "In fact there is for sure a problem in the credit system, and in the repricing of the financial system."

    He also cautioned against the risk of trade protectionism in the United States. "Protectionist risks are higher if there was to be a recession."

    However, the U.S. government has a different view on the issue.

    U.S. Secretary of State Condoleezza Rice said the U.S. economy will remain a leading engine for global economic growth despite concerns about a possible U.S. recession.

    "The U.S. economy is resilient, its structure is sound, and its long-term economic fundamentals are healthy," Rice told a plenary.

    Japanese Prime Minister Yasuo Fukuda acknowledged Saturday that the risk of the global economy taking a downward turn is increasing against the backdrop of the sub-prime mortgage loan crisis in the United States and the surge of oil prices to record levels, among other issues.

    But he said there is no need to be too pessimistic and called for urgent coordination among countries.

    "There is no need to take an excessively pessimistic view of the current situation, but at the same time we do need to have a sense of urgency as we engage in coordinated actions while each country also implements necessary domestic response measures," said Fukuda.