The world's economies are becoming increasingly and irreversibly interdependent, the chief of the International Monetary Fund's (IMF) world economic studies says. Graham Hacche said yesterday globalisation would lead to growing trade, accelerated financial flows, more intense economic specialisation and rising productivity. Mr Hacche, speaking at the launch of the IMF's World Economic Outlook, said the collapse of the centralised Soviet-bloc economies would accelerate the trend. He said: 'It would be difficult to imagine countries wanting to drop out of the globalisation process. The benefits to the global economy that have been experienced in the past will be experienced in the future.' According to the IMF, globalisation refers to the 'growing economic interdependence of countries worldwide through the increasing volume and variety of cross-border transactions in goods and services and of international capital flows.' The Outlook report's findings were foreshadowed last month at an IMF conference in Washington. One of the key recommendations was the promotion of Hong Kong into the ranks of advanced economies because of its diversified economy, well-developed financial sector and per capita income, among the highest in the world. Mr Hacche said there was no link between rising competition from the developing world and a decline in manufacturing in advanced economies. He added that globalisation would reward governments' fiscal and monetary discipline rather than inhibit their powers.