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The economic background [June 1996]

Low, Kenneth and Ashcroft, Brian and Malloy, Eleanor and Le Tissier, Sarah (1996) The economic background [June 1996]. Quarterly Economic Commentary, 21 (4). pp. 1-5. ISSN 0306-7866

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Concerns over the 1995 slowdown in the world economy are subsiding as recovery continues through 1996. The US and Japan are leading the recovery with European growth expected to strengthen later this year. Recent loose monetary policy, recovery from shocks and a relaxation of fiscal policy have all contributed to renewed growth. G7 growth is forecast to be 2.3% in 1996 and 2.5% in 1997 whilst OECD growth is forecast at 2.3 % and 2.6% in 1996 and 1997 respectively.