The global economy should grow soundly this year and next, says the International Monetary Fund in its latest World Economic Outlook.

The IMF today projected that the global economy would grow by 5.2% this year and moderate to 4.8% in 2008.

The forecast for this yea, which was unchanged from a projection issued in July, would be slightly slower than last year’s 5.4% global growth.

However, the forecast for next year was downgraded by almost one-half percentage point from the summer outlook, reflecting the expected toll of financial market strains. The lower projection, though, would still mark a “solid” performance, the IMF said.

“Risks to the outlook, however, are firmly on the downside, centered around the concern that financial market strains could deepen and trigger a more pronounced global slowdown,” the IMF warned.

One big risk to the global economy comes from gyrating oil prices.

“Oil prices have risen to new highs and a further spike in prices cannot be ruled out,” the IMF said.

The gradual slowing currently envisioned comes as the United States is facing a considerable loss of speed.

The IMF lowered its forecast for U.S. growth, predicting the economy would expand by just 1.9% this year and next, reflecting the impact of the worst housing slump in 16 years and the effects of the credit crisis.

The economies of Canada and Mexico — two countries more likely to experience “spillovers” from the U.S. economic slowdown — should grow by 2.5% and 2.9%, respectively, this year. Next year, growth in Canada is expected to slow to 2.3% while in Mexico it should edge up to 3%.

In Europe, the IMF is projecting economic growth in Germany to slow to 2.4% this year and then 2% next year. The United Kingdon should see growth pick up to 3.1% this year and slow to 2.3% in 2008.

Japan is expected to see growth slow to 2% this year and then 1.7% next year.

China is projected to log growth of 11.5% this year and 10% in 2008.

India should log growth of 8.9% this year and 8.4% next year. Growth in Russia this year should accelerate to 7% and moderate to 6.5% next year.