...medium-term for 2008-11 are summarized in the first section. The second section presents a brief description of changes to the database and statistical tables. The third section provides a general description of the data, and of the conventions used for calculating country group composites. The classification of countries in the various groups presented in the World Economic Outlook is summarized in the fourth section.

The last, and main, section comprises the statistical tables. Data in these tables have been compiled on the basis of information available through early April 2006. The figures for 2006 and beyond are shown with the same degree of precision as the historical figures solely tot convenience; since they are projections, the same degree of accuracy is not to be inferred.

Assumptions

Real effective exchange rates for the advanced economies are assumed to remain constant at their average levels during the period February 9 to March 9, 2006. For 2006 and 2007, these assumptions imply average U.S. dollar/SDR conversion rates of 1.438 and 1.441, U.S. dollar/euro conversion rate of l.19 and 1.20, and yen/U.S. dollar conversion rates of 116.9 and 115.9, respectively

It is assumed that the price of oil will average $61.25 a barrel in 2006 and $63.00 a barrel in 2007.

Established policies of national authorities are assumed to be maintained. The more specific policy assumptions underlying the projections for selected advanced economies are described in Box A1.

Box A1. Economic Policy Assumptions Underlying the Projections for Selected Advanced Economies The short-term fiscal policy assumptions used in the World Economic Outlook are based on officially announced budgets, adjusted for differences between the national authorities and the IMF staff regarding macroeconomic assumptions and projected fiscal outturns. The medium-term fiscal projections incorporate policy measures that are judged likely to be implemented. In cases where the IMF staff has insufficient information to assess the authorities' budget intentions and prospects for policy implementation, an unchanged structural primary balance is assumed, unless otherwise indicated. Specific assumptions used in some of the advanced economies follow (see also Tables 12-14 in the Statistical Appendix tot data on fiscal and structural balances). (1) United States. The fiscal projections are based on the Administration's FY2007 Budget (February 6, 2006), adjusted to take into account differences in macroeconomic projections as well as staff assumptions about (1) additional defense spending based on analysis by the Congressional Budget Office; (2) slower compression in the growth rate of discretionary spending; (3) government spending for the clean-up and reconstruction in areas damaged by Hurricane Katrina; and (4) alternative minimum tax (AMT) reform beyond FY2007. Japan. The medium-term fiscal projections assume that expenditure and revenue of the general government (excluding social security) are adjusted in line with the current government target to achieve a primary fiscal balance by the early 2010s. Germany. Official estimates were used for 2005. For 2006-2011, the World Economic Outlook projections reflect measures as announced in the new government's coalition agreement. These aim to reduce the overall fiscal balance to below 3 percent of GDP in 2007, centered around a 3 percent increase in the value added tax, or VAT (as of January 2007). France. The projections for 2006 are based on the initial budget adjusted for the IMF staff's macroeconomic assumptions. For 2007-09, the projections are based on the intentions underlying the 2007-09 Stability, Program Update adjusted for the IMF staff's macroeconomic assumptions, lower projections for nontax revenue, unchanged tax policy beyond 2007, and a less sharp deceleration in spending growth than projected by the authorities beyond 2007. For 2010-11, the IMF staff assumes unchanged tax policies and real expenditure growth as in the 2009 projection. Italy. Fiscal projections from 2007 onward are based on a technical assumption of a constant primary structural balance net of one-off measures. They do not incorporate measures that would be adopted in the 2007 budget. United Kingdom. The fiscal projections are based on information provided in the 2006 Budget Report. Additionally, the projections incorporate the most recent statistical releases from the Office for National Statistics, including provisional budgetary outturns through 2005:Q4. The computation of the structural fiscal balance is based on staff projections of the output gap. Canada. Projections are based on costing of the new government's program provided during the recent election campaign, which were examined for accuracy by Canada's Conference Board (http://www.conservative.ca/media/20060113FiscalPlan.pdf). Australia. The fiscal projections through the fiscal year 2008/09 are based on the 2005-06 Mid-Year Economic and Fiscal Outlook published in December 2005. For the remainder of the projection period, the IMF staff assumes unchanged policies. Austria. Fiscal figures for 2005 are based on the authorities' estimated outturn. Projections for 2006 are based on this year's budget....

NOTE: All illustrations and photos have been removed from this article.



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