The global trade and world economy will possibly increase, according to the International Monetary Fund (IMF). This statement was in contrast to the report that the group disseminated stating that the global trade will suffer a major downside in the up and coming years. The said increase was .25 percent higher compared to the initial IMF prediction last April.

IMF is a group that is responsible in checking and ensuring that each member country has sufficient funds and orderly financial system. In a recent report of the IMF, it stated that two of the biggest profit-producing industries in the world will lead the global trade to disorder. The incessant increase in oil cost and the depreciating housing market of the US were two of the main causes that degenerate the trade.

However, despite the new prediction, the organization is still pressing on to its caution regarding global trade imbalances. The said imbalances are caused by the depreciation of the US dollar and the increased in China's trade surpluses. The Asian country's weak currency boosts its economy, because the goods that are being imported there cost relatively lower than those that come from other neighboring nations. On the other hand, US, considered as the globe's vast economy, has depreciated its trade for more than $64 billion.

The recent Global Financial Stability report dealing with imbalances in the global trade market was issued at the commencement of the World Bank and IMF yearly conference held in Singapore. Also in the said report, the IMF officials commented that the current global malady is a timely encouragement for finance ministers and bank leaders, coming from variegated regions in the world, to empower and enact macro-economic policies and rules, and to start implementing structural changes.

Meanwhile, the said group forecast that the surpluses coming from oil manufacturing and exporting nations will still be high, and that the economy of eurozone will keep on recouping. However, not all member countries of IMF will have an incessant increase in the global trade. Germany, in particular, is predicted to have a slower growth in its economy because of the surge in the value added tax to 19 percent.

The IMF stated that the countries' central banks should measure the dangers of the continuing growth and price rises, and that restricting more accrual rates might be required. IMF also added that Japan, as another progressive Asian nation, should raise interest rates continually to help ease the inequalities concerning the global trade.

In the meantime, the said Singapore meeting of the World Bank and IMF have already earned controversies after the Singaporean government declined to remove its prohibition on demonstrations and protests on the streets in spite of the clamors from militant and non-government groups who wanted to air their grievances regarding the global trade issues.

At the official commencement of the global trade meeting between World Bank and IMF, civil rights activists were astounded with the narrow protest area that are surrounded by Singaporean officials and police. With the pressure coming from the NGOs and protestants, IMF is beneath the strain and tension to enact changes within the organization, and settle issues concerning the inequalities in the global trade.