The IMF report undercut the prediction of the U.S. Federal Reserve, which called for a slow recovery in the second half of 2008.

IMF said the U.S. economy would grow 0.5 percent in 2008 and 0.6 percent in 2009.

Growth in the euro area would slow to 1.4 percent in 2008 and 1.2 percent in 2009; Britain would experience 1.6 percent growth in both years, the report said.

Global growth would hit 3.7 percent in 2008, the report said, as emerging markets, such as China (9.3 percent growth), Russia (6.8 percent), India (7.9 percent) and the Middle East (6.1 percent) would bolster the flagging economies elsewhere.

Japan's growth was predicted at 1.4 percent for 2008.

"Emerging economies are likely to weather storm better, but (are) not insulated," the report said.