Rato, speaking to reporters during a visit to Gabon, said the global economy was currently strong and he saw that strength persisting through to the end of 2005.

"What we see right now is a strong recovery in 2004 and 2005, probably even stronger than we predicted in April," he said.

The recovery should be able to withstand the surge in oil prices, which are at record levels on strong demand and concerns about supply stability, Rato said.

"It is true that oil has an effect on the world economy ... but other positive issues are balancing that situation," the IMF managing director said.

The next World Economic Outlook, the Washington-based lender's twice-yearly snapshot of economies around the globe, is expected in late September.

The fund forecast 2004 world growth of 4.6 percent when it released its last outlook in April, but officials have since suggested that number may be revised higher.

Oil prices struck fresh record highs above $44 a barrel on Wednesday, spurred to further gains after OPEC President Purnomo Yusgiantoro said Saudi Arabia had spare production capacity but could not immediately raise output to rein in soaring prices.