High Hopes, Deep Disappointment


Summing up the discussion on the decline in economic growth the Survey suggests that "the consequences of this series of vicious circles need not be exaggerated. .. Even without any deliberate policy or re-expansion of demand, economic activity in the United Kingdom should gradually pick up strength, The forecasts for the West German economy, after the recent mild shift in policy towards supporting rather than restraining demand indicate continued slow growth..." Southern Europe, containing Europe's less developed countries, i e, Greece, Spain, Turkey continue to expand their real output at over 8 per cent per year. Other countries like Italy, France. Norway and Sweden continued to grow at the normal pace, i e, 4 to 5 per cent. The major stimulus to re-expansion in both Italy and France seems to have come from accelerated private consumption and public expenditure.