| Abstract | Output growth in the Organizaton for Economic Co-operation and Development economies is improving. The US economy has entered its third year of expansion, while Germany, and to a lesser extent Japan, now appear in recovery. In those economies where the recovery is furthest advanced, central banks have begun to the reversal of short-term interest rates. Dampened by the deterioration in the US current account and US-Japan trade disputes, the US dollar has weakened significantly against other leading currencies. In China, despite some slowing in activity, higher food prices have pushed up inflation. The external value of the Ren Men Bi has stabilised, assisted by an improving trade balance. |
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