A global economic recession is approaching with the United States and Europe suffering the most, Swiss bank UBS said in a report yesterday.

An economic recession is expected to start in the United States from the second half of this year and last until the middle of 2009, economists at the bank said in the report.

A recession is inevitable even in Europe, especially in countries with marked imbalances, the report said, adding that European central banks are likely to further lower key interest rates.

According to UBS estimates, marked growth slowdown will also spread to Asia.

The Japanese economy is expected to stagnate at best in the coming year, the report said. But large countries such as China, India or Indonesia should fare better thanks to domestic demands.

Overall, UBS economists expect global economic growth to slow from about 5 percent in 2007 and 3.7 percent in the current year to 2.4 percent in 2009.

Growth of less than 3 percent for two or more consecutive quarters is considered a sign of economic recession.