FMI forecasts a 5% global economic growth in 2007

The world economy is poised for its fastest five-year growth streak in three decades, the International Monetary Fund said today, adding that declining oil prices have helped make its forecast more certain. Global growth will approach 5 percent this year according to the fund's managing director, Rodrigo de Rato. The outlook is virtually unchanged from the fund's September forecast for a 4.9 percent expansion, Bloomberg writes, quoted by Info-Prim Neo. "Declining oil prices have eased both risks to aggregate demand and inflation pressures, though volatility in oil prices remains a concern", stated Rato. According to him, "The global environment looks quite favourable, and this provides a not-to-be-missed opportunity for all countries to advance structural reforms and fiscal consolidation”. According to official estimates, economic growth in Moldova will constitute 4%, but some international institutions are more pessimistic, mentioning a pace of 3 to 3.5%.