otherthings, onthegrowthofeconomic activity, thelevelofprotectionism and themannerinwhichtheexternal debtproblem ofdeveloping countries isresolved .• 90.Forthemediumtermandtheforeseeable future, thelevelsofeconomic activity ofthedeveloped marketeconomy countries willcontinue tobethe dominating forceofworldeconomic growth byreasonofthegroup's sheerweight and itsinfluence ininternational tradeandfinancial flows. Asshownintable15the developed marketeconomies areexpected togrowat2.7percentin1985(aftera growthrateof4.5percentin1984),2.4percentin1986and2.9percent in1987,withanaverage annualgrowthrateof2.9percentfortheperiod 1985-1990. Amajorroleisexpected tobeplayedbyNorthAmerica (especially the UnitedStates) andJapan,whiletheaverage annualgrowthrateforWestern Europe isestimated atsome2.6percentduringthesameperiod. Uncertainties overthe mediumtermrelatemainlytothesustainability oftheeconomic recovery inthe UnitedStates, whichinthepasttwoyearsaccounted forabout70percentofthe demandgrowthintheotherOECDcountries, onaccount ofthefiscalandexternal deficits oftheUnitedStates. Othermajorconcerns thatcouldvitiate the baseline projections include thesituation oftheheavily-indebted developing countries andtheprevalence ofinterventionist tradepolicies. I....A!40!5l9 English Page40 Table15.Realworldoutput: Annual growthratesinGDP (Percentage change fromprevious year) projections 1976- Average Average 1980 1985 1986 1987 1988-1990 1985-1990 Developed marketeconomies 3.52.72.42.9 3.1 2.9 NorthAmerica 3.52.9 2.6 3.4 3.2 3.1 Europe 2.82.32.02.4 2.8 2.6 JapanandAustralia 5.13.9 3.1 3.1 3.3 3.2 Developing countries 5.03.63.54.3 4.7 4.3 Africa 4.43.12.73.5 3.4 3.3 EastandSouthAsia 6.05.55.45.2 5.6 5.5 WestAsia 4.03.03.2 3.8 4.6 4.2 Western Hemisphere 5.22.82.74.3 4.3 3.9 Oil-exporting 3.03.14.0 4.5 3.9 Non-oil exporting ...3.8 4-.14.8 4.8 4.6 Centrally planned economies!I 4.24.64.64.5 4.4 4.5 USSRandEastern European countries 4.04.03.93.9 4.0 4.0 China 5.3E/6.97.26.9 6.0 6.4 World 4.03.23.03.5 3.6 3.5 Memorandum items: Worldexport volume 6.06.94.3 4.5 4.4 4.7 Developed marketeconomies: Inflation rate£I 9.64.54.44.5 4.8 4.6 Unemployment rate 5.68.78.88.8 8.5 8.6 Source: Department ofInternational Economic andSocialAffairs oftheUnited Nations Secretariat, basedonprojections frominternational sources, particularly thoseofProject LINK(asofApril1985). ~!Netmaterial product (NMP)• .ElFor1978-1981. £IPrivate consumption deflator. /...A/40/5l9 English Page41 91.Thebaseline projections ofunemployment ratesindicate thattheoverall unemployment rateinthedeveloped marketeconomies willremainhigh,atabout 8.7percentin1985,compared with5.8percentfor1980,andwillremainatthat levelthrough 1989.Itwillnotbeuntiltheendofthedecadethataslightdip intheunemployment rateisexpected. Theunderlying causesofsucha.relatively highlevelofunemployment ratesinthedeveloped market economies canbetracedto boththedemandandthesupplyside. Aninsufficient demandforlabouris considered tobetheresultofstringent fiscalandunaccommodating monetary policies followed bygovernments, whileonthesupplysideitisthought that several factors, including theinsufficiency incapital formation inthe1970s,the highlevelofrealwages, amismatch between capital andlabourskills andlower labourunionpowertoopposelaboursharing intimesofhighunemployment etc., causestructural highunemployment inthedeveloped marketcountries, particularly thoseinWestern Europe. Ashorter working weekhassometimes beensuggested asan interim solution tothepersistent highunemployment problem. 92.Inthebaseline scenario, the"strong" dollarisexpected tobeonlygradually modified inthemediumterm. Theexpected weakness ofcommodity prices (including thepricesofoil)intermsofdollars, together withamoderation inwagedemands andacontinuing restraint onmonetary andfiscalpolicystance, willensure alow
**Analysis**
The text appears to be discussing the economic growth and development of countries, with a focus on the medium-term projections and the factors that may influence them. It also touches on issues related to unemployment, inflation, and the external debt problem of developing countries.

**Category**
Economic development, International trade, Employment