International Economy

World economic growth for 2005 is projected at 4.3 percent, measured in terms of real gross domestic product (GDP). The years 2003 and 2004 had growth rates of 4.0 percent and 5.1 percent, respectively. The International Monetary Fund in Washington forecasts world economic growth for 2006 at 4.3 percent;1 this is a constant growth rate compared with 2005, still signifi cantly above the historical trend of 3 percent. The forecast predicts continuously robust economic growth for the United States, China, and India. Middle and Eastern European countries, emerging Asian, African, Latin American, and oil-exporting countries will dynamically expand economic output. Similar to previous years, the economic outlook for Europe and Japan is lackluster (see Table 1).