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   At   the  presentation  of  the  Commission  services'  latest   economic
   forecasts, the Vice-President Henning Christophersen points out that  the
   growth  outlook  for the period until end 1993?is for a  gentle  recovery
   which  has  only  just begun, but which should gather pace  as  the  year
   unfolds.  The  upswing  is to be generated mainly by a  strengthening  of
   domestic demand. Overall, GDP is expected to grow by 1 3/4% in real terms
   in 1992 and by about 2 1/2% in 1993.
   The  employment/unemployment outlook shows a sharp reversal  on  previous
   progress.  For the first time since the early 1980s recession, a marginal
   fall  in job creation is forecast, with only a modest  recovery  expected
   next  year.  This  results in a worrying upward movement in the  rate  of
   unemployment.  By  1993, the rate of unemployment may attain 9.7% of  the
   labour force.
   The  Vice-President  stresses that the growth and labour  market  outlook
   underscores  the need for stepping up structural reforms to promote  non-
   inflationary, employment-creating growth in the Community.  Referring  to
   the  conclusions of the informal ECO/FIN meeting in Oporto in early  May,
   the  Vice-President  underlines  that the ECO/FIN should  soon  focus  on
   possible  initiatives to underpin the rather slow recovery and  to  fight
   the unemployment problem.
   Monetary  policy  must however remain  vigilant  and  stability-oriented.
   Inflation  remains too high despite a forecasted reduction to 4  1/2%  in
   1992  and  to  4% in 1993.  Though the  anticipated  narrowing  of  price
   divergences  in  the Community is encouraging, further  progress  towards
   price  stability is necessary in the countries with high inflation  rates
   as  well  as  in  those  traditionally  low  inflation  countries   where
   inflationary pressures have been increasing.
   The  Vice-President underlines that the situation with low  growth  calls
   for a rapid, comprehensive and transparent translation of the convergence
   programmes  into effective measures.  This is the only way to ensure  the
   restoration  of  consumer  and  business confidence  and  for  a  further
   improvement  in the fundamental conditions for  growth.  Particularly  in
   the  budgetary  field, the forecasts  clearly highlight the size  of  the
   required corrective measures in a number of countries.
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