Prospects for the global economy as a whole are little changed from the May 1997 World Economic Outlook (Table 1). World output growth is projected to edge up to 4¼ percent this year and in 1998, slightly slower than projected in May but still the fastest expansion in a decade. Inflation is again projected to remain subdued in the advanced economies, at average rates of 2–2 ¼ percent, and to decline further in the developing countries and the countries in transition. World trade volume is projected to expand by 7¾ percent in 1997 and 6¾i percent in 1998, rates that are somewhat faster than those in 1996 but below the exceptionally rapid growth rates of 1994–95.