The International Monetary Fund sharply reduced its forecast for the world economy today, saying growth would be only a sluggish 1.4 percent this year.

But today, the company reduced its forecast to 1,050,000, down 17 percent from the total in the first quarter of this year.

But he said he might reduce his forecast if the drought did not ease.

The company is tightening spending after reducing its forecast for second-quarter sales growth by half, to less than 10 percent.

G.M. also reduced its forecast today for production in the current quarter by 5,000 vehicles, to 1,373,000.

The firm reduced its forecast for a 2 percent to 2.5 percent national economic growth rate in the current quarter to 1 percent.

In the wake of the report, Chase reduced its forecast for second-quarter economic growth to an annual rate of 2.5 percent, from 3 percent.

That led the agency, which advises 26 oil-consuming nations, to reduce its forecast for global oil demand for 2005 by 70,000 barrels a day.

It had also reduced its forecast for public sector job losses, and did not expect a double-dip recession.

The department also reduced its forecast for the Florida crop from 165 million boxes to 151 million.