Economic Activity Stabilised

Economic activity stabilised in the summer months. Exports and production in manufacturing recovered somewhat from the slump in the spring. The leading indicators are also on an upward trend. But it would be premature to conclude from these signs that a general recovery is under way; entrepreneurs still view the future with a good deal of pessimism. Developments in the labour market wre more favourable than expected; employment losses from October 1992 to October 1993 were only marginal and the increase in unemployment levelled off. Inflation has eased only gradually, with the rate of inflation stuck at 3.4 percent since August.