IMF sees world economic growth of 4.6 percent in 2004, 2005

Reuters has reported that International Monetary Fund (IMF) managing director Rodrigo Rato sees world economic growth of around 4.6 percent in 2004 and 2005, according to an interview published August 20 in ABC,a national Spanish newspaper, and credited to El Comercio, a newspaper in Gijon in the north of Spain.

In the interview Rato said, "We see the whole world economy growing robustly around 4.6 percent during this year and, very probably, next year as well." He also said that the major economies should back up this growth with reforms, which for the U.S. meant curbing its budget deficit and for the European Union reforming the labor market.

"The U.S. has to reduce its public deficit, taking advantage of the clear recovery and tax revenues, and Europe should use the expansive phase to carry out labor reforms and shake off the moderate growth rates of the last 10 years," Rato said.

The IMF forecasts the euro zone economy will expand by just 2.0 percent this year.