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<P> I Global outlook <BR>Macroeconomic prospects for the world economy <BR>Moderation of world economic growth expected <BR>Stabilizing international economic environment for developing countries<BR>Lacklustre employment growth <BR>Impact of higher oil prices on infl ation and income <BR>Widening global imbalances <BR>Global investment anaemia, not a savings glut <BR>Widening net foreign asset positions and exchange-rate adjustment <BR>Downside risks of the global outlook <BR>Disorderly adjustment of imbalances <BR>Additional oil price shocks <BR>End of the housing market bubble <BR>Other risks <BR>Policy challenges and the case for international macroeconomic policy coordination<BR>Current macroeconomic policy stance <BR>Dealing with higher oil prices and infl ated house prices <BR>Redressing imbalances through coordinated policies <BR>Galvanizing aid, trade and fi nance for achieving the MDGs <BR>II International trade <BR>Trade fl ows: trends and outlook<BR>Commodity prices and markets<BR>Non-oil commodities <BR>World oil markets <BR>Trade policy developments and trends <BR>Doha negotiations: keeping the Round alive <BR>Bilateral and regional trade agreements <BR>Non-tariff barriers: a rising trend in world trade <BR>Textiles and clothing: post-ATC developments <BR>Annex: Developments in non-oil commodity markets 59<BR>III Financial fl ows to developing and transition economies 65<BR>Net transfers of fi nancial resources 65<BR>Net private capital fl ows: sustained positive investor sentiment and ample liquidity 66<BR>Increasing foreign direct investment 70<BR>YYePG Proudly Presents, Thx For Support!<BR>xiv World Economic Situation a and Prospects 2006<BR>International fi nancial cooperation 72<BR>Offi cial fl ows: IMF is a net receiver of resources from developing countries 72<BR>Offi cial development assistance: more but still not enough 73<BR>Initiatives to enhance aid effectiveness 75<BR>South-South Cooperation is increasing 76<BR>HIPC Initiative and other debt-relief measures 77<BR>Governance of the global fi nancial system 81<BR>Multilateral surveillance 82<BR>International standards and codes 83<BR>The modalities for offi cial liquidity provision 83<BR>Policies on crisis resolution 85<BR>IMF engagement with low-income countries 87<BR>IV Regional developments and outlook 89<BR>Developed market economies 89<BR>North America: imbalances and risks increase 90<BR>Developed Asia and the Pacifi c: ending defl ation in Japan 93<BR>Western Europe: a weak recovery in 2005 96<BR>The new EU members: dynamic but uneven growth 99<BR>Economies in transition 101<BR>South-eastern Europe: dynamic growth continues but at a slower pace 103<BR>The CIS: strong growth prevails despite some slowdown 105<BR>Developing economies 107<BR>Africa: GDP growth continues to be robust 107<BR>East Asia: solid growth amidst increased downside risks 111<BR>South Asia: a sustained broad-based growth 114<BR>Western Asia: boom conditions persist amidst uneven growth 117<BR>Latin America and the Caribbean: export-led growth 121</P>