Global Economic Developments: Key Takeaways and Statistics

Strategic Insights -

A report by the United Nations estimates the total external debt of developing countries and countries in transition at nearly 2.5 trillion U.S. dollars at the end of 1998, a 6 percent increase from the 1997 level. Meanwhile, crude oil prices slumped 15 percent in the same period, with Brent crude trading at $20.70 a barrel. The European Union expressed support for China's World Trade Organization entry, but emphasized the need for "right terms." Trade ministers from Asia and Europe will discuss trade barriers in Berlin, ahead of a ministerial meeting in Seattle. China's economy is expected to grow by 8-10 percent in the second half of 1999, driven by government policies and a recovery in Asia.

Key Takeaways:

  • The total external debt of developing countries and countries in transition was estimated at nearly 2.5 trillion U.S. dollars at the end of 1998, a 6 percent increase from the 1997 level.
  • Short-term debt accounted for less than 17 percent of the total external debt in 1998, down from 20 percent in 1997.
  • Crude oil prices slumped 15 percent in the year to October, with Brent crude trading at $20.70 a barrel on October 29.
  • The European Union expressed support for China's entry into the World Trade Organization, but emphasized the need for "right terms."
  • Trade ministers from Asia and Europe will discuss trade barriers in Berlin, ahead of a ministerial meeting in Seattle on November 30-December 3.
  • China's economy is expected to grow by 8-10 percent in the second half of 1999, driven by government policies and a recovery in Asia.

Statistics:

  • Total external debt of developing countries and countries in transition at the end of 1998: over 2.5 trillion U.S. dollars
  • Increase in external debt from 1997 to 1998: 6 percent
  • Short-term debt as a percentage of total external debt in 1998: less than 17%
  • Short-term debt as a percentage of total external debt in 1997: 20%
  • Crude oil price slump from peak to October 29: 15 percent
  • Brent crude price on October 29: $20.70 a barrel
  • Forecasted growth rate of China's economy for the second half of 1999: 8-10 percent

Sources:

  • UN Report-Debt-Developing Countries
  • Crude Oil
  • EU-China-WTO Entry
  • Asian-European Ministers-Berlin Meeting
  • US-C. Board-China's Recovery
  • Nestle-Business-Sale
  • COMTEX (http://www.comtexnews.com)