Growth in the world economy improved slightly in 2006 relative to 2005, from
3.5 per cent to 3.8 per cent. It is driven by the strong performance by Asian economies, which continue to post growth rates above 8 per cent. In contrast, growth in advanced economies remains modest and is yet to reach the pre-2001 level. Key constraints to growth include the massive global macroeconomic imbalances along with tight macroeconomic stances in advanced economies, which prevent demandled recovery. High oil prices undermine growth in both advanced and developing countries through high production costs.