World economic growth is set to expand at its fastest rate for 10 years, the International Monetary Fund predicted yesterday.
Its influential annual assessment of global economic prospects forecasts growth of up to 4.5 per cent for this year and 1998.
The fund's research director, Michael Mussa, said: 'With world output expected to expand by some four to 4.5 per cent in both 1997 and 1998, the strongest pace in a decade, the global economy is enjoying the fourth episode of relatively rapid growth since the early 1970s.' He believed the current expansion could be sustained, possibly into the next decade.
Despite having to downgrade the performance of some Southeast Asian nations, the fund nevertheless believes the region's growth will continue to be the world's strongest.
China's robust growth and pace of economic change, particularly its accelerated programme of state-owned enterprise reform, was endorsed by the fund.
The recent currency and equity problems that have shaken Thailand and spread to other economies - including Malaysia, the Philippines and Indonesia - would have some impact on regional growth, it said.
