IMF PRESENTS WORLD ECONOMIC OUTLOOK

ZAGREB, June 15 (Hina) - Permanent representative of the International Monetary Fund (IMF) in Croatia, Gary O'Callaghan, presented the IMF's World Economic Outlook in Zagreb on Tuesday. A large part of global economy is in recession, which affects the economies of countries in transition, including that of Croatia. The projection of the growth of the gross domestic product for Croatia in 1999 was 1.5 per cent, and according to the most recent indices, its GDP will be lesser by one to two per cent. Internal structural and banking problems are affecting Croatia's economy, besides the global recession. The IMF assesses the growth of global economy would be slowed down, and should amount to about 2.3 per cent or less in 1999. Economies of countries in transition in 1999 will note a recession of almost one per cent, but also a 2.3 per cent growth in the next year, O'Callaghan said. Speaking about Croatian economy, O'Callaghan described as positive the maintenance of the stable currency and foreign exchange reserves, the possibility of a stricter control of banks by the Croatian National Bank, and a stricter monetary policy as of this march. Growth will be slowed down and restricted, and Croatian citizens must lessen their expectations, adjust to the current moment and be patient until an adjustment and growth of the economy, he said. (hina) lml jn