ECSC financial report 1995

Abstract

Economic situation in the European Union in 1995 The year 1995 saw a marked slowdown in growth, which declined from 3.5-4% per annum in 1994 to about 2% 1n the second and th1rd quarters of 1995. On the basis of information collected since the latest available fore-casts (November 1995), growth in 1995 is likely to have been less than the 2. 7% ant1c1pated. As m 1994, the international env1ronment rema1ned favourable in 1995, des-pite a slowdown m the United States and the deprec1at1on of the dollar at the beginning of 1995, which continues to hold back Community exports. The slowdown pa~ticularly affected domestiC demand, firstly through an abrupt reversal of stockbuildmg and lower investment m construction and then, in the second half of the year, through a slowdown in investment in cap1tal goods and private consumption.