Developed economies: a slowing engine of world economic growth

Almost every developed economy is expecting slower economic expansion and in Japan possibly continued contraction with increasing unemployment in 1999 (see table A.1). This follows on the mixed results in 1998, in which the United States economy out performed and the Japanese economy underperformed most forecasts. The net result was that the aggregate growth of the developed economies fell in 1998 compared to 1996 and 1997. Some of the high unemployment developed countries will be hard pressed to reduce domestic unemployment (see table A.4). Inflation continues to be very low (see table A.3). With presently predicted rates of growth for 1999—of over 2 per cent in North America and Europe— policy makers would not be expected to push for the immediate relaxation of monetary conditions in their countries, although as the scenario described above suggests, a relaxation of monetary policy in 1999 as part of a coordinated package could be advantageous.

Sustainable Development Goals:

Decent Work and Economic Growth