IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

The European economy in 1998 and 1999

Listed author(s):
  • CPB Netherlands Bureau for Economic Policy Analysis (The Hague) (Ed.)
  • Institut fur Weltwirtschaft (Kiel) (Ed.)
  • National Institute of Economic and Social Research (London) (Ed.)
  • Observatoire Français des Conjonctures Economiques (Paris) (Ed.)
  • Prometeia (Bologna) (Ed.)

World economic activity remains relatively robust, although the Asian crisis casts a shadow over the picture. The rate of growth of world trade has slowed down since last fall, but is expected to remain above its trend level. International price developments remain quite moderate. Oil prices have declined substantially, and are among the lowest of the decade. Inflationary pressures are also limited in the industrial countries, as capacity constraints are not yet significant there and excess supply has materialized worldwide. The industrial countries show a sustained growth rate between 2Vi and 3 per cent on average. However, the combination of strong growth and low inflation is the result of divergent developments between countries. • The US economy has been until recently particularly buoyant, as strong domestic demand has more than offset the dampening effect of falling exports to Asia. The Japanese economy remains in the doldrums. The threat of a deflation has recently prompted a substantial stimulation programme aiming at preventing a further deterioration of confidence. \^ Economic growth in Asia has been-severely_ restricted, in particular in the ASEAN countries and Korea, although extensive rescue operations have brought the situation in the worst hit countries more or less under control. The impact on the European countries is as yet rather limited, as negative trade effects are largely compensated for by beneficial effects of lower imported inflation and lower interest rates. Thus Western Europe is in a position to sustain the recovery that began in mid-1996. Prospects have been strengthened as uncertainties associated with the implementation of the EMU have now been dissipated. The time has now come to begin to view the EMU countries as a single entity from the viewpoint of economic management, even if differences persist in many fields.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: no

Paper provided by Kiel Institute for the World Economy (IfW) in its series Kiel Discussion Papers with number 319.

in new window

Date of creation: 1998
Handle: RePEc:zbw:ifwkdp:319
Contact details of provider: Postal:
Kiellinie 66, D-24105 Kiel

Phone: +49 431 8814-1
Fax: +49 431 8814528
Web page:

More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:zbw:ifwkdp:319. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.