Some three thousand business and political leaders are gathered in the Swiss ski resort of Davos for an annual get-together.

Analysts at the World Economic Forum predicted the world will probably avoid recession despite slowing U.S. growth. They also predicted more gains for the euro currency and warned that Japan is facing mounting economic problems.

Alan Blinder, an economist and former vice chairman of the U.S. Federal Reserve, predicted a bumpy road ahead for the U.S. economy, but most likely not a recession.

Other participants cautiously echoed similar forecast. They say the world's biggest economy would see growth pick up from the second half of this year.

The assessment was in sharp contrast to last year's Forum, when the U.S. looked set to remain the world's locomotive with sustained, low-inflation growth and rising stock prices.

Hundreds of police and kilometers of barbed wire kept anti-globalisation protesters away from the site of the six-day meeting.

In a pre-opening session, a Japanese delegate said North Korean leader Kim Jong-il's visit to China reflects his recognition that North Korea can no longer sustain itself without opening like China.

South Korean Finance and Economy Minister Jin Nyum cancelled his planned trip to the annual economic conference. Media speculated that the last-minute cancelation may have been linked to a cabinet reshuffle. But the ministry gave no reason.