The world economy [September 1990]

The early part of 1990 saw continued slowing of economic growth in the major industrialised countries. GDP growth in the top seven industrialised nations (the G7) was just 0.5% in the first quarter, the same as the final quarter of 1989. For the year to March G7 GDP growth slowed to 2.4% compared with 3.3% for calendar year 1989. The most rapid slowdown occurred in the US where 3.0% growth in 1989 fell to 2.1% in the year to March. Overall G7 growth would have been considerably lower had it not been for increases in the growth rates of West Germany (4.3%) and Japan (5.5%). Growth rates for the remaining G7 countries (excluding Italy) were as follows: Canada 2.2%; France 2.5%; UK 1.8%. Global macroeconomic trends are examined as well as labour market conditions