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Added the reference pointed out by Mark Sapir on the negative answer regarding the stronger assertion.
Stefan Kohl
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Is it true that every f.g. infinite simple group has exponential growth?

Is it true that every finitely generated infinite simple group has exponential (word-)growth?

Remark: As Mark Sapir has pointed out, the question whether every finitely generated group of subexponential growth is even residually finite has been answered in the negative in

Anna Erschler. Not residually finite groups of intermediate growth, commensurability and non-geometricity, J. Algebra 272 (2004), no. 1, 154–172, http://www.sciencedirect.com/science/article/pii/S0021869303006410.

Stefan Kohl
  • 19.6k
  • 21
  • 75
  • 137