IMF updates world economic outlook

In its latest World Economic Outlook report, the International Monetary Fund (IMF) is projecting global economic growth of 5 percent this year, falling to 4.3 percent next year. In April, it had estimated global growth of 4.7 percent in 2004 and 4.4 percent next year.

The IMF lowered its growth projections for the US to 4.3 percent this year from 4.6 percent. For next year, growth was lowered to 3.5 percent from 3.8 percent.

For Japan, 2004 growth was raised by 1.1 percentage points to 4.4 percent, while 2005 growth was raised by 0.5 percentage point to 2.3 percent.

Meanwhile, in the US, the Commerce Department yesterday revised second quarter GDP growth up from 2.8 percent to 3.3 percent.

Today, the Japan's Ministry of Economy, Trade and Industry reported that industrial production was up 0.3 percent in August, the first rise in three months.

And with oil prices falling for the past two days, there is hope that the world economy is not about to roll over just yet.