for by higher growth in other industrial countries. Europers growth of output has been slow and growth in employnent slower still. Its current account has moved from a $0.2 billion surplus in I98l to a surplus of over $27 billion in 1984r Largely or,ri ng to the significane stimulus from United States imports. Slnce European import growth is unlikety to gather strength in the short tern, this surplus is likely to grow further in 1985. The current account surplus of Japan rose from $6 bil!.ion in 198I to $36 billion in 1984. Prelimi.nary estimates indicate an even higher surplus in 1985. In these ci.rcumstances it is not, for most count.ries, presenl ba fance-of-pay ments constraints that discourage expansionary policies but rather the fear of rekindling inftation, which has been brought onder control, the disinclination to increase budget deficits and also the lesson of previous individual attempts aE expansion, which clearly demcnstrated ho\t guickly they could ruin the balance of payments. 24. Imbalances in the current account between developinq and developed countries are no less important and even mcre difficutt to sustain. The svring here has been dramatict the conbined current accounE deficit of 123 indebted developing countries dropped from $113 billion i.n 1981 to $38 billion in 1984. The current accoun! deficit of the seven largest borrowers - $40 billion in 1982 - was virtually eliminated in 1984. To consider these current account positions sustainable in the medium term is to bet on the continuation of a net transfer of resources from deblor to creditor countries in the form of surpluses in trade and non-factor services of the order of 5 per cent of gross domestic product for the major borrowers. Such net resource transfers have been increasing since 1983, and in
**Analysis**
The text primarily discusses the economic situation of various countries, specifically the current account surpluses and deficits, and the implications for their economic policies. It also mentions the relationship between developed and developing countries, highlighting the significant imbalances in current account positions. The text does not touch on other topics such as natural resources, environment, agriculture, forestry, fishing, health, education, employment, humanitarian aid, culture, or science and technology.

**Category**
International trade, Economic development