Passage 2
International conditions for growth in developing in 1991. The seven major industrial countries ( the G-7) experienced a significant slowdown in GDP growth-from 2.8 per cent in 1990 to 1. 9 per cent during 1991 as recession gripped Canada, the United Kingdom, and the United States and growth rates slowed in continental Europe and Japan. In important respects, the slowdown was different from those that occurred during the 1970s and 1980s. Rather than reflecting the effect of disinflationary policies, weakness in demand was more closely related to the loss of momentum that had built up during the long period of expansion that began in 1983. In addition, a common factor underlying the slowdown in many industrial countries was the cyclical deceleration in investment spending.
How did international conditions for growth in developing countries deteriorate in 1991?
After World War II. the economic growth of many developing countries depends substantially on export. With the Westemn economies slackening, they could not enjoy as much overseas markets as before.