The world economy [June 1989]

Ashcroft, Brian and Love, Jim and Brooks, Richard and Dourmashkin, Neil and Draper, Paul and Dunlop, Stewart and Yin, Ya Ping and Lockyer, Cliff and Malloy, Eleanor and McRory, Eric and Monaghan, Claire and McGregor, Peter and McNicolI, Iain and Perman, Roger and Stevens, Jim (1989) The world economy [June 1989]. Quarterly Economic Commentary, 14 (4). pp. 1-4. ISSN 2046-5378

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Growth in the world economy is slowing down compared with the rate achieved during 1988 but the slow-down may not be as great as expected. Inflationary pressures continue to be present, particularly in Japan and Germany, although the recent general tightening of policies should begin to show some effects by the end of the year. But the bias in favour of monetary policy is arguably contributing to the failure to remove the world economy's principal financial imbalances. Growth is now expected to be around 3.5% during 1989 compared with a rate above 4% in 1988 and the earlier expectation of 3% growth in 1989.