International Monetary Fund

The sixteenth annual report of the Executive Directors of the International Monetary Fund for the fiscal year ending April 30, 1961, was transmitted to the Chairman of the Board of Governors on June 23, 1961, by Mr. Per Jacobsson, Chairman of the Executive Board. The report stated that in contrast to the year 1959, when virtually all countries had participated in world-wide expansion, the year 1960 and early part of 1961 had presented a less unified picture. For the world as a whole, the expansionary elements had considerably outweighed the contractionary elements. World industrial production, excluding the countries of the Soviet area, had been almost 6 percent greater in 1960 than in 1959, having grown by 10 percent; and the value of world trade had increased by 12 percent, compared with 6 percent in 1959. The stimulus for the rise in world trade had come predominantly from the booming European industrial countries and from Japan, which had increased their imports by nearly 20 percent; there had been a slight decline in imports from the United States and Canada. The imports of the less-industrialized countries had also increased considerably, by some 10 percent. Trade developments during 1960 had improved the basic international payments situation in some respects. Rising exports and slightly declining imports caused an increase in the surplus of private goods and services account in the United States. West Germany's surplus also increased, while France's remained stationary; decreases had been noted in several other industrial countries, in particular Japan and Italy, where the rate of economic expansion had been exceptionally high, and in the United Kingdom, mainly due to the sharp growth of imports associated with their high level of economic activity.