Uneven Development in the Global Economy

In 1994 the global economy is characterized by a substantial recovery, though marked growth differentials remain. The Asian countries and North America continue to constitute the growth centers. Economic activity in Japan remains weak. Within Europe, the Anglo-Saxon and Scandinavian countries show robust growth while the German upswing is feeble. Inflation remains subdued. Economic growth is not sufficient to prevent an increase in unemployment. The rise in the long-term interest rates risks jeopardizing the recovery of the European economies.