National economic outlook 1995-1996

Abstract

The recovery in the global economy appears to be firmly established with some economies coming out of recession while others are trying to sustain their growth momentum. Most of the European countries have reported positive growth for the first half for 1994 and the momentum is expected to continue in 1995 and 1996. In the US, recent data suggests a growth rate of 3.6 per cent for 1994. The strong monetary stance taken by the Fed in recent months is expected to generate slower growth rates in 1995 and 1996. Asia still remains the most dynamic region in the world economy. With Japan moving out of recession at a slow pace, and China growing at around 10 to 11 per cent, the NIEs and the ASEAN countries are expected to perform better in 1995 and 1996 with average growth rates of around 5 to 6 per cent.