Slow Recovery of World Economy

In 1993, the world economy expanded by 2¼ percent, but economic activity grew by only 1 percent in the industrialised countries. At the end of 1993 the situation in the OECD is characterised by an upswing in the U. S. and the U. K. but a recession in the rest of Western Europe and in Japan. There are indications that the recession in West Germany is coming to an end. The recovery predicted for 1994 will be unusually weak. GDP growth for the OECD total is likely to be 2¼ percent (1993 1 percent), for OECD Europe 1½ percent (–¼ percent). A slight acceleration is expected for 1995. Inflation will remain low. Unemployment will continue on its upward trend in Europe and Japan, but will decline in the U. S. World trad will pick up again in 1994.