By Xinhua
Washington : World economy is expected to grow robustly at 5.2 percent in 2007 and 4.8 percent in 2008 despite the recent financial turmoil, a report released by the International Monetary Fund (IMF) said Wednesday.
According to the World Economic Outlook report, the 4.8 percent growth next year, 0.4 percent less than the World Bank’s July revision, was mainly caused by the turbulence in financial markets.
Among the advanced economies, projection for the US growth in 2007 is unchanged at 1.9 percent.
“Ongoing difficulties in the mortgage market are expected to extend the decline in residential investment, while house price declines are likely to encourage households to raise their saving rate out of current incomes and, thereby, dampen consumption spending,” the report said.
India is expected to expand its economy by 8.9 percent this year and 8.4 percent next year.
Euro area growth is expected to slow to about 2.5 percent in 2007 and 2.1 percent in 2008, while growth in Britain is expected to go from 3.1 percent in 2007 to 2.3 percent in 2008.
China’s growth would continue in 2007 and 2008 from its very high rate in 2006. It is expected to grow by 11.5 percent in 2007 and 10.0 percent in 2008.
Russia would continue to grow robustly at 7 percent this year and by 6.5 percent next year.
China, India and Russia have accounted for one-half of global growth over the past year, said the IMF.
Commodity-rich countries in Africa, the Commonwealth of Independent States (CIS), the Middle East, and Latin America would continue to prosper, said the report.
However, Canada and Mexico would be somewhat more affected by spill overs from slower growth in Europe and the US, said the report.