The outlook for world production and trade in 1964 and early 1965 has not changed much since February. Continued strong expansion in the United States seems certain now that the tax cuts have been enacted; and there is rather more evidence of a slackening in the pace of growth in France and Italy. World trade should again rise rapidly, though the reserve position of some primary producers is rather weak and they may not be able to increase their imports a great deal further in 1964. Quite large gains and losses of reserves are to be expected among industrial countries, particularly in Europe.