| Abstract | Economic conditions in the major Organisation for Economic Co-operation and Development (OECD) economics are heading towards moderate growth rates and tame inflation, although unemployment remains high. The US economy is slowing to a more sustainable growth rate. Continental Europe is picking up pace. The Japanese economy is improving, but it remains to be seen if recovery has established self-sustaining momentum. China sustained steady economic growth in the September quarter of 1996 due to buoyant growth in state sector's fixed asset investment and consumer spending. With lower inflation, the Chinese government made another interest rate cut in August 1996, by more than 100 basis points on average. The debt-ridden state enterprises continue to pose a challenge to policy. |
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