BRUSSELS -- Defying a slowing global economy, the online advertising market is expected to grow by 23% this year to $43.3 billion, according to the Berlin-based European Information Technology Observatory.

Despite the damage inflicted by the financial crisis, turnover with advertisement banners, sponsored links and other online advertising format will grow 13% to $18.6 billion in the U.S., still by far the largest market in the world.

Although the Internet economy in Europe is growing from a smaller base, it is developing fast and is forecast to grow 31% in 2008 to $12.4 billion. The next biggest market, Japan, will surge 15% to $4.5 billion, while China will leap forward 46% to $1.6 billion.

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