The International Monetary Fund, in an annual review of the economy, predicted 4.5 percent US economic growth in 2004, trimming a three-month-old forecast for 4.6-percent growth.

For 2005, it forecast growth of 3.9 percent.

"Directors observed that the short-term outlook for the US economy remains relatively favorable, although subject to some uncertainty," the IMF assessment said.

High energy prices were a risk, IMF directors said in the report, a warning that coincided with a surge in New York's main oil contract to a record 43.85 dollars a barrel on Friday.

The IMF also showed caution over the low household saving rate and rapid recent increases in house prices.

Those risks were balanced by rapid productivity growth, which kept price pressures at bay, it said.

"Looking further ahead, however, most directors stressed that continued robust growth of the economy will require decisive action to strengthen the US fiscal position to avoid a crowding out of investment," the fund said.