None of the economies of the industrialized core are currently suffering from recession. India may have finally turned the corner, and joined the rapid industrializing economies of Asia. East Asian growth continues to outstrip growth in all of the other regions of industrialization. There is an even larger gap between East Asian growth and growth in regions that are not successfully industrializing-like tropical Africa, North Africa, the Middle East, and the former Soviet Union.
Inflation remains moderate throughout East Asia.
Other industrializing regions see some economies that are on track for yet another hyperinflationary spiral. This is not the case in East Asia-at least not yet. Interest and Exchange Rates Exchange rates are not pushing the bounds of their normal trading ranges in either direction. After a prolonged period of relatively high real interest rates in the industrialized core, real interest rates in Europe and North America are for the most part back to normal trading ranges. Forecasts The forecast for 1997, and for a year or two beyond, is more of the same.