Global economic developments and implications for the ESCAP region

The world economy exhibited several welcome developments in 1999. The United States of America managed to sustain a remarkable growth momentum, robust consumer demand and a tight labour market did not undermine domestic price stability, and the stock market avoided any major correction despite recent volatility. These positive developments in the United States coincided with the budding economic recovery in Japan, the maintenance of reasonably healthy growth in a large part of Asia, and positive trends in production and employment in several of the Asian economies hit by the crisis underpinned by falling interest rates, fiscal stimulus, higher export earnings and reserves, and improved investor and market confidence. All these developments combined to raise global growth estimates by almost one percentage point in real terms during the second half of 1999, compared to forecasts made at the beginning of 1999. The improvement in global economic performance and outlook expected for the year 2000 provides a sharp contrast to the relatively bleak prospects of the world economy as perceived by many at the beginning of 1999.

Sustainable Development Goals:

Decent Work and Economic Growth

Reduced Inequalities