Running Out of Steam

The Pacific Basin countries feel a drag from the U.S. slowdown

Throughout 1983 and '84, the U.S. was the churning locomotive of the world economy. But when that engine of growth sputtered and slowed this year, many of the trading partners it was pulling along practically lurched off the track. The jolt was particularly rough on the export-driven economies of the Pacific Basin. In Taiwan, which depends on the American market to absorb nearly half its exports, growth in the production of goods and services, adjusted for inflation, has fallen from 10.9% in 1984 to a projected 4.2% this year. Over the same period, Singapore's rate of expansion has dropped from 8.2%...

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