Economic Outlook Grim, IMF Annual Report Says: IMF Calls World Outlook Grim
An extremely grim world economic situation has emerged in the past year because of high inflation on a global scale, a marked slowdown in growth and volatile trading relationships, according to the annual report of the International Monetary Fund.</br></br>The IMF also warned that the impact of soaring trade deficits in developing countries that do not produce oil is threatening the ability of these nations to find financial support for continued trading and economic expansion.</br></br>A slowdown in industrial nations could lead to a halt in the expansion of world trade and create another international recession, the Washington-based organization said in a report scheduled for publication next weekend.</br></br>Privately, officials of the IMF have said they expect that a major theme of debates at the world bodyÛªs annual meetings starting here later this month will he urgent appeals by developing nations for more extensive help from the richer countries.</br></br>At the same time, an IMF official forecast that the predicted debates are not expected to result in substantive policy changes or initiatives from the rich countries. Nor is any softening expected in implementation of .IMF lending guidelines, although some international lending executives anticipate a move to permit longer periods for loan repayments by countries that are strapped for funds.