Chapter II. The World Economy

Extract

World economic growth slowed down sharply during the summer. Between the first and third quarters the annual rate of increase in the volume of industrial production in the industrial countries appears to have been only about 1½ per cent. Demand remained rather weak in a number of countries, notably the United States, the United Kingdom, and France, while in West Germany there was a severe shortage of capacity. Strikes, notably those in Italy and, more recently, the stoppage at General Motors in the United States, have also interfered with output to a greater extent than usual.