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IMF says global economy to grow 5pct

17 January 2007 13:19 (UTC +04:00)

The world economy is poised for its fastest five-year growth streak in three decades, the International Monetary Fund said yesterday, adding that declining oil prices have helped make its forecast more certain.
Global growth will approach 5 percent this year, the fundâ€™s managing director, Rodrigo de Rato, said in Washington. The outlook is virtually unchanged from the fundâ€™s September forecast for a 4.9 percent expansion.
The price of a barrel of crude oil has fallen 32 percent since early August, suggesting energy prices will be less of a catalyst for inflation.
Another risk identified by the fund, lopsided global trade and investment flows, has also diminished, de Rato said. The US trade deficit narrowed in November to the smallest since July 2005.
The growth spurt gives policy makers a chance to remove barriers to global trade and investment and help ensure the expansion will continue, de Rato said. He urged leaders to revive the Doha round of world trade talks, which collapsed last year. /APA/