World economic growth this year will beat the International Monetary Fund's current forecast of 4.3 per cent thanks to a recovery in Europe and Japan, the global lender's managing director said.
IMF chief Rodrigo Rato said the economic environment was "very benign", as the potentially harmful impact of record oil on output growth and inflation had been mitigated by low interest rates and the beneficial effects of globalisation.
"We see the world economy growing faster than we expected in September," Mr Rato said, referring to the IMF's most recent World Economic Outlook, which predicted 2006 growth of 4.3 per cent.
The IMF will publish its next outlook in April.