ECSC financial report 1993

Abstract

Economic background and developments in ECSC industries General economic situation In 1993, the recession pursued 1ts course and unemployment rates con-tinued to rise in most Member States. At the same t1me, there was consid-erable nse 1n budget deficits. Econom1c growth, which had been + 1% 1n 1992, fell to -0.4% 1n real terms 1n 1993: the f1rst negat1ve growth rate since 1975. Th1s poor perform-ance was due to the general slow-down in world econom1c activity. In the Community, the recession started relatively late owing to German unifica-tion, wh1ch boosted demand 1n Germany and hence 1n Europe as a whole. Other factors adversely affected econom1c activity and bus1ness and con-sumer confidence, 1n particular diff1cult1es with the rat1f1cat1on of the Treaty on European Un1on, turmoil on the fore1gn exchange markets and disagree-ments at the GATT negotiations. These negative Influences comb1ned with the economic slow-down to cause a continuing declme 1n investment and a drop 1n exports