The U.S. economic growth will slow down in 2007 and that might cast a shadow over the prospects of global economy, Switzerland's largest banking group, UBS, said on Monday.

"UBS analysts have been predicting a U.S. slowdown for over a year, and this scenario is now materializing," the bank said in a media summary of its "Global outlook 2007".

"Looking into 2007, UBS analysts expect slower U.S. growth than most other economic forecasters," the statement said, without giving any data, however, to support its prediction.

The bank said the U.S. slowdown would affect other regions of the world. But domestic demand in other major economies should continue to drive global growth in 2007.

Globally, "in this challenging economic environment, investors will become more aware of risks; any disappointing economic news, or political events may lead to temporary market corrections," UBS cautioned.

UBS analysts expected a "slightly rougher environment" in 2007 for booming Asian economies, but they "do not think the current slowdown in the U.S. economy will derail the Asian economic train", the bank said.

China and most other countries in Asia will slow down as export growth moderates, but a pick-up in domestic demand will compensate partly, the bank said.

"Although UBS analysts are unlikely to see comparable performance numbers in 2007...positive fundamental drivers for Asian markets remain in place," it said.

The bank predicted "a temporary dampener" on economic growth in the eurozone, due to a combination of the situation in the U.S. and higher interest rates.

However, full year growth in eurozone gross domestic product ( GDP) in 2006 was likely to be the strongest in six years and the conditions were conducive to a continuation of the upswing in 2007, it added.