In a statement sent to member countries, WHO said it decided to raise the pandemic warning level from phase 5 to 6 -- its highest alert level -- after holding an emergency meeting on swine flu with its experts.
"At this early stage, the pandemic can be characterized globally as being moderate in severity," WHO said in the statement, urging nations not to close borders or restrict travel and trade. "(We) remain in close dialogue with influenza vaccine manufacturers."
Health officials from Scotland, Indonesia and Thailand previously announced the agency would declare a swine flu pandemic -- a global epidemic -- on Thursday after a teleconference with leading flu experts. Officials at U.N. missions in Geneva also said they expected the imminent announcement of a pandemic.
"It is likely in light of sustained community transmission in countries outside of North America -- most notably in Australia -- that level 6 will be declared," Scotland's Health Secretary Nicola Sturgeon told Scottish lawmakers, adding it would be Thursday.
Indonesian health minister Siti Fadilah Supari said she had been notified by WHO that "today will be declared to be phase 6."
The last pandemic -- the Hong Kong flu of 1968 -- killed about 1 million people. Ordinary flu kills about 250,000 to 500,000 people each year.
Since swine flu first emerged in Mexico and the United States in April, it has spread to 74 countries around the globe.
On Wednesday, WHO reported 27,737 cases including 141 deaths. Most cases are mild and require no treatment, but the fear is that a rash of new infections could overwhelm hospitals and health authorities -- especially in poorer countries.
The long-awaited pandemic announcement is scientific confirmation that a new flu virus has emerged and is quickly circling the globe. It will trigger drug makers to speed up production of a swine flu vaccine and prompt governments to devote more money to containing the virus.
In May, several countries urged WHO not to declare a pandemic, fearing it would spark mass panic.
Panic has already gripped Argentina, where so many people worried about swine flu flooded into hospitals this week that emergency health services have collapsed. Last month, a bus arriving in Argentina from Chile was stoned by people who thought a passenger on it had swine flu. Chile has the most swine flu cases in South America.
In Hong Kong, the government on Thursday ordered all kindergartens and primary schools closed for two weeks after a dozen students tested positive for swine flu.
In Australia, swine flu cases jumped to more than 1,000 on Monday and reached 1,260 by late Wednesday.
WHO says its pandemic announcement would not mean the situation was worsening, since no mutations have been detected in the virus to show it is getting more deadly.
In Edinburgh, Sturgeon told lawmakers that a WHO announcement means countries should immediately activate their pandemic plans.
"A move to level 6 is not a verdict on the severity of the virus," she said. "It simply means that the extent of global spread now fulfills the definition of a pandemic."
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