Growth in the world economy is slowing down compared with the rate achieved during 1988 but the slow-down may not be as great as expected. Inflationary pressures continue to be present, particularly in Japan and Germany, although the recent general tightening of policies should begin to show some effects by the end of the year. But the bias in favour of monetary policy is arguably contributing to the failure to remove the world economy's principal financial imbalances. Growth is now expected to be around 3.5% during 1989 compared with a rate above 4% in 1988 and the earlier expectation of 3% growth in 1989.
|Number of pages||4|
|Journal||Quarterly Economic Commentary|
|Publication status||Published - 1 Jun 1989|
- Fraser of Allander
- world economic activity
- world economic condition