ECSC financial report 1989

Abstract

In 1989 the Community's economic growth remained strong, although somewhat lower than in 1988. The rate of increase in real terms in the Community's gross domestiC product (GOP) was 3.4%. compared w1th 3.8% in 1988. Investments and exports were once again the most dynamic components of demand. growmg 1n 1989 by 7% and over 8% . respectively. Inflation (the deflator of pr1vate consumption) accelerated between mld-1988 and mid-1989 under the combmed impact of higher import pr1ces. higher wages in some countries and higher taxes and charges for public services in others. Thanks to swift adjustments to monetary policy and a softening of import prices 1n the course of 1989. this trend appears to have been halted. with a final annual rate of 4.9% against 3.6% in 1988.