The International Monetary Fund says the world’s economy is enjoying one of its most sustained periods of expansion since World War Two and the risks of an upset have diminished. IMF Managing Director Rodrigo Rato told reporters: “After four consecutive years of strong growth, we expect the global growth will remain solid in 2007, approaching 5%.”
Rato added that although the US economy has slowed down, in large part because of a continued weaker housing market, he believes that a soft landing seems more assured. He said that was because lower energy prices are supporting employment growth and consumption. He did concede that there are risks, notably from imbalances like the United States’ massive trade deficit with key emerging economies like China.