New Delhi, Sep 7 - India's economic growth is forecast to slip to 5 percent in 2009 from 7 percent during the previous calendar year, even as the world output is slated to decline by 2.7 percent, said a report released by a UN agency Monday.

'Since domestic demand accounts for a large and increasing share of total demand, South Asia, particularly India, is expected to see continued growth in 2009,' said the annual Trade and Development Report of the United Nations Conference on Trade and Development (Unctad).

'Almost all the South-Asian economies should continue to grow in 2009, but at a lower pace. They are feeling the impact of the crisis through reduced capital inflows, lower migrants' remittances and falling external demand,' the report added.