The Economy At The Close Of 1983

After a stagnant performance in 1982, gross national product (GNP), industrial production, and employment increased during 1983 in nearly all industrial nations, with the U.S. performance generally leading the uneven worldwide recovery. Real U.S. GNP increased 3.3 percent in 1983 (table I). Although investment in nonresidential structures declined, total nonresidential fixed investment in the United States was up 1.5 percent following a 1982 decrease. The increase in worldwide industrial activity and demand in 1983 put greater pressure on prices in many countries. Prices increased from less than 3 percent in the Federal Republic of Germany, Japan, the Nether-lands, and Switzerland to as much as 10 percent in nearly all the other Organization for Economic Cooperation and Development nations. The annual inflation rate in the United States was 4.3 percent (based on the GNP fixed-weight price index).