World economy to grow at 3.2%

THE world economy is expected to grow at 3.2% this year and 4.1% in 2004, the International Monetary Fund has predicted.

The end of major hostilities in Iraq had “contributed to increasing signs of renewed recovery”, alongside stronger equity markets and greater consumer confidence in the US and elsewhere, the IMF said in its latest World Economic Outlook report. However, it said these signs were “subdued” and “fragile.”

The outlook, issued ahead of a meeting in Dubai of the boards of the World Bank and its sister organisation, the IMF, sharply downgraded growth forecasts for the 12 European countries using the euro.