The World Health Organisation has declared a swine flu pandemic, raising its alert level to the maximum of six.
It does not mean the virus has become more deadly, just that its geographical spread is now global.
The WHO warned that countries already hit by the virus should prepare for a "second wave" of cases.
The number of infections has climbed in the United States, Europe, Australia, South America and elsewhere.
It is the first global pandemic for 41 years. The virus first emerged in Mexico in April and has now spread to 74 countries with a reported 27,000 cases and 141 deaths.
Twenty-five new cases have been confirmed in the UK, bringing the total number to 822. There have been no deaths.
A Department of Health spokesperson said: "The localised cases of swine flu found in the UK have so far been generally mild in most people, but are proving to be severe in a small minority of cases.
"We are continuing to work to slow the spread of the disease and to put in place arrangements to ensure that the UK is well-placed to deal with this new infection."
In a statement to member countries, the WHO said it decided to raise the pandemic alert level from phase five to six.
The decision was made after the UN health agency held an emergency meeting in Geneva, Switzerland, on swine flu with its experts.
Moving to phase six will trigger a large scale production of vaccines and prompt governments to devote more money towards efforts to contain the virus.
It will also raise questions about why the step was delayed for weeks as the virus continued to spread.
The WHO has urged countries not to close borders or restrict travel and trade.
It said: "At this early stage, the pandemic can be characterised globally as being moderate in severity. We remain in close dialogue with influenza vaccine manufacturers."
According to the WHO's own pandemic criteria, a global outbreak means a new flu virus is spreading in at least two world regions.
Sky's health correspondent Thomas Moore said any move to declare a pandemic did not mean the virus itself was growing in potency.
He explained: "This is a marker if you like of geographical spread. It's not an indication that the virus is becoming more severe."
GlaxoSmithKline is already working with a key ingredient of the swine flu vaccine to see how quickly doses can be produced.
And other major pharmaceuticals like Sanofi Pasteur have also been working on a vaccine after WHO gave them a "seed stock" of the virus last month.
However, drug giants say it could take up to six months before large amounts of a swine flu vaccine are available.
After an emergency meeting, the World Health Organization (WHO) has finally declared a global flu pandemic, a first in 40 years after the 1968 Hong Kong flu that killed approximately 1 million people. Health authorities admit, however, that ‘the current pandemic seems to be moderate and causing mild illness in most people.’
Professor John Oxford, a flu expert, says that the virus spread of Influenza A (H1N1), formerly called swine flu, has indeed gone ‘global and fulfilling the requirements of a pandemic.’
‘Reports of several pockets of community spread’ have convinced WHO authorities to declare a level six pandemic. Another reason behind the latest declaration is that ‘the virus seems to be crowding out normal seasonal influenza’ in the southern hemisphere. The pandemic level alert also means that the ‘virus is spreading in at least two regions of the world.’ Swine flu cases have been rising in the UK, Australia, Japan, and Chile.
The WHO, however, has explained that the pandemic alert level ‘does not necessarily mean the virus is causing more severe illness or more deaths.’
Since its first case in Mexico in April, the Influenza A (H1N1) virus has spread to 74 countries. According to the latest WHO update of 11 June 2009 14:00 GMT, 74 countries have officially reported 28,774 cases of influenza A(H1N1) infection, including 144 deaths.
The vaccine specific to Influenza A (H1N1) is now under development. The earliest doses will be available by October.
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