WASHINGTON, July 17, 2008 (AFP) - The IMF on Thursday slightly raised its growth forecasts for the world including the United States but said the global economy remains in a 'tough spot' due to rising inflation amid a slowdown.

World output is expected to climb 4.1 percent in 2008, up from its April projection of 3.7 percent, the International Monetary Fund said in an update of its World Economic Outlook. But the report also dramatically boosted the inflation outlook.

For 2009, the forecast calls for 3.9 percent global growth, up a notch from its earlier call of 3.8 percent.

The IMF made modest upward revisions in the outlook for the United States, eurozone, Japan and China, but suggested that the small gains in output still reflect a slowing from 2007 levels and may be overshadowed by inflation pressures.

'The global economy is in a tough spot, caught between sharply slowing demand in many advanced economies and rising inflation everywhere, notably in emerging and developing economies,' the report said.