(For full coverage of the flu outbreak, click [nFLU])

* Mexico begins shutting down parts of economy

* WHO says no evidence now to raise pandemic threat level

* Economists mull possible economic fallout (Adds Canada case, updates Mexico steps)

By Catherine Bremer

MEXICO CITY, April 30 (Reuters) - Mexico began shutting down parts of its economy on Thursday to slow the spread of a new flu strain as officials urged increased worldwide precautions against an imminent pandemic.

The World Health Organization said it would remain for now at its current alert level -- one step below full pandemic -- and that it would no longer refer to the H1N1 virus as "swine flu" to appease beleaguered meat producers. [nLU498917]

New confirmed flu cases were reported in the United States, Canada and Europe, although a case in Peru, which would have been the first confirmed case in Latin America outside of Mexico, was later discounted.

Almost all cases outside of Mexico have been mild, only a handful of patients have required hospital treatment, and most global markets have shrugged off concerns.