Search for other papers by International Monetary Fund in
Current site
Google Scholar
Abstract
World economic growth declined to 2 percent in 1990 from 3¼ percent in 1989. Growth slowed in the industrial countries, as well as in Africa, and economic activity declined in the developing countries of Eastern Europe, the Middle East, and the Western Hemisphere (Table 1). The crisis in the Middle East and restructuring in Eastern Europe affected the global economic picture. The rate of growth of world trade also slowed, falling to about 4 percent in 1990 from 7 percent in 1989. Consumer price inflation increased to 5 percent in 1990 from 4½ percent in 1989 in the industrial countries and rose from 80 percent to 90 percent in the developing countries, largely owing both to the temporary rise in oil prices and price developments in a small number of high-inflation countries in Eastern Europe and the Western Hemisphere. Oil prices surged in August and September 1990 and then dropped rapidly in January. Net external borrowing of the net debtor developing countries rose to some $60 billion in 1990.
International Monetary Fund Copyright © 2010-2021. All Rights Reserved.