Factors Inhibiting Recovery
Short-Lived Comeback From 1974–75 Slump
The world's recovery from the 1974–75 recession is proving to be much slower and more painful than economic experts had anticipated. Although the inflationary surge is gradually slowing down, unemployment remains at unacceptably high levels in most industrial nations and shows no indication of subsiding. Equally perturbing is the lack of any strong prospect for a significant improvement in the economic growth rates of the “locomotive” economies of the United States, West Germany and Japan during 1978. Massive balance-of-payments problems, caused largely by costly oil imports, are forcing most of the industrial countries to be far more cautious in their economic planing than in prosperous decades that preceded the recession.
The recovery tapered off quickly in many of these ...