Output in the domestic economy taken as a whole probably grew no further during the first quarter of 1969. This was primarily because consumer spending declined, largely in response to the measures of restraint introduced last November, but also because exports were no longer rising. The flatness of exports (and some exceptional official payments on capital account) brought about another substantial identified balance of payments deficit, despite a large improvement in invisibles; however, the balancing item was strongly favourable. Domestic credit became tighter, mainly as a result of the Government's very large revenue surplus.
Published on
01 June 1969
Commentary