World economic situation and prospects for development

World economic growth, which had already weakened substantially in 1989, decelerated in 1990 to the slowest rate since 1983. An overall growth rate of only 2.0 per cent was expected to be achieved in 1990. The prospects for 1991 were bleaker owing to the Persian Gulf crisis. The international environment at the end of 1990 stood in considerable contrast to that which was emerging a year ago, when hopes had been raised of a peace dividend for the world economy. The euphoric expectations aroused by the developments in Eastern Europe and the Union of Soviet Socialist Republics were soon replaced by more sombre calculations of the costs both in time and money, of the transition of these economies to a market-based system. The stalemate in the Uruguay Round of multilateral trade negotiations in Brussels added to the uncertainty about the possible evolution to a more liberal and equitable world trading system, which the developing countries had hoped for as a means of reinvigorating their growth and development.

Sustainable Development Goals:

Decent Work and Economic Growth

Reduced Inequalities