The International Monetary Fund (IMF) is forecasting strong global growth for 2005, driven primarily by the United States and developing Asia. The IMF’s latest assessment highlights the resilience of the global economy despite several challenges.

The report points to strong consumer spending and business investment in the U.S. as a major engine of growth. Furthermore, the burgeoning economies of China and India are expected to continue their rapid expansion, contributing significantly to global output.

However, the IMF also cautioned about potential risks to the global outlook. Rising oil prices remain a significant concern, potentially dampening economic activity and fueling inflation. The report also highlighted the issue of global imbalances, particularly the large U.S. current account deficit, which could pose a threat to financial stability.

The IMF urged policymakers to address these challenges proactively to ensure sustained and balanced global growth. This includes implementing fiscal reforms to reduce government debt, pursuing structural reforms to enhance competitiveness, and promoting greater exchange rate flexibility.