The International Monetary Fund has reported that the global economy’s growth was expected to slow this year due to high energy costs.
In its World Economic Outlook, released on Wednesday, it projects the global economy will grow by 4.3 percent this year compared to 5.1 percent in 2004.
However, IMF Research Director Raghu Rajan said the world economy is overly dependent on some major countries. "We see an increasing divergence across the regions, the expansion continues to be overly-dependent on growth of the United States and emerging Asia while we still await a sustained recovery in the euro area and Japan."
Next year, the IMF is forecasting the world economy to expand by 4.4 percent, slightly faster than the 2005 projection. For the United States, the IMF is predicting economic growth will increase by 3.6 percent this year and next year.
