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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>