GLOBAL ECONOMY IN 1999 PROGRESSED, CROATIA'S BACKSLID -- IMF

WASHINGTON, April 12 (Hina) - An International Monetary Fund annual report on global economy described economic and financial global tendencies last year as dramatically improved, with expected progress during the year 2000. Economic growth last year was 3.3 per cent which significantly exceeded the IMF's cautious prognoses that it would be a little over 2 per cent. The impetus should bring the global economy a growth of 4.25 per cent this year. Croatia, however, is located in the group of countries which ended last year with negative economic growth. Only Moldavia, Romania and Lithuania in the group of transitional countries have worse indicators than Croatia's minus two per cent of production. On the other hand, price increases and inflation had been successfully thwarted. The IMF asserted the increase in retail prices in Croatia had last year been four per cent while it foresees a three per cent price increase for the year 2000. Highly developed countries are expecting an about two per cent inflation this year, while transitional almost 20 per cent. In the report issued for the IMF's and world Bank's spring session in Washington, the Fund warned about the constant retrogress of the poorest countries, slow rehabilitation in Japan and possible disturbances in the key global currencies. (hina) lml jn