IMF Trims Economic Growth Forecast: In its...

IMF Trims Economic Growth Forecast: In its latest “World Economic Outlook,” the 181-nation lending institution projected global output would expand by 3.8% this year, down from an October estimate of 4.1%. But the International Monetary Fund also discounted the danger of a worldwide recession and said a number of hopeful signs suggest 1995’s unexpected weakness will not snowball into an outright downturn in ’96. It noted that the Federal Reserve Board and other monetary authorities had cut interest rates. The IMF predicted the U.S. economy, as measured by gross domestic product, would expand by 1.8% this year, even slower than last year’s 2% growth. But it said trends already underway should lift growth to a slightly better 2.2% rate in 1997.