Managing Director of the International Monetary Fund (IMF) Rodrigo Rato warned Thursday that rising oil prices remained a growing threat to the global economy.

"The impact of oil on the global economy has so far been moderate, but it remains a serious risk," Rato said at a press conference in Washington before the IMF and the World Bank are holding their spring meetings on April 22-23.

The IMF head said that "It is likely that higher prices are going to last and that among other things (this) has to show all of us that we have to adjust to a situation that is going to last. "

On Wednesday, the IMF predicted that the global economy is expected to grow 4.9 percent this year and 4.7 percent in 2007. It also estimated that average world oil prices, which advanced 15 percent last year, would increase by 0.9 percent in 2006 and 5.7 percent in 2007.

"There is a need to reduce obstacles to both upstream and downstream investment, and to invigorate conservation programs," Rato said. "These measures will take some time to show effect but surely the sooner we start the better."

Meanwhile, Rato said that the IMF must start changing its method of operating to deal with the changing world economy brought about by globalization.

"We need to move with the times and move ahead from what was an orderly way of addressing global issues in the 1980s and 1990s to a more multilateral way of consulting," he said.

Source: Xinhua