Washington March 15 - The administration of President Carl Arling today predicted another six months of slow GNP growth and rising inflation. Chief economic advisor to the president, Walter Abel, told a news conference that in- creased foreign competition, rising prices for raw materials, and high interest rates would hold economic growth to less than 3% for the year with inflation rising above 7%. Abel said, however, that administration programs to restructure the economy would begin bearing fruit toward the end of the year and that growth in the gross national product would turn sharply upwards in the last quarter. He also said that the administration of President Arling was determined to increase investment in high technology industries, upgrade aging plant equipment in heavy industry, and encourage workers to increase productivity. Abel admitted that high interest rates threatened the strategy, but warned that any action to artificially lower interest rates risked fueling even greater inflation. "We are still recovering from the recession caused by the previous administration and attempts to force the pace of recovery could be dangerous," he said.

The forecast for the next six months is encouraging.