Economic commentary

Quarterly Bulletin 1990 Q2
Published on 01 June 1990
  • The developed world continues to experience strong growth, the balance of which is shifting towards Europe.
  • UK exports are now responding well to growth abroad and are sustaining output growth here, albeit at a slower rate.
  • German unification has important implications for resource flows there and creates further trading opportunities for other countries.
  • Meanwhile, the previous policy tightening in the United Kingdom is continuing to establish a better balance between domestic supply and demand, with corporate as well as household spending now being constrained.
  • Weakness in non-oil commodity prices is coming to an end but oil prices have fallen back.
  • UK inflation is proving stubborn and in the short term the rate of growth of the RPI is expected to rise; it is important that domestic cost pressures are contained to limit damage to our competitiveness.

PDFEconomic commentary

Other Quarterly Bulletin 1990 Q2 articles

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