Following two years of slow economic growth, the recovery for the world economy in 1993 is projected to be sluggish (Table 1). A protracted slowdown in Europe and an unexpectedly sharp weakening of activity in Japan have contributed to significant downward revisions to the output projections for many countries for 1993.1 Against this background of recent setbacks there are, however, some encouraging developments: strengthening recoveries in North America; continuing progress and resilience in many developing countries; indications in some central European economies that reforms are starting to bear fruit; and significant reductions in inflation in a number of countries. There is also scope for improving economic prospects in 1994 and beyond through a cooperative growth strategy.