viii balance of payments and exchange rate policy international economic situation world conditions improved during last year with aggregate gdp growth estimated at 3 4 percent in calendar 1999 compared to a projection 2 the real push came from us economy which continues expand rapidly after brief slow down 1998 annualized bounced back 5 first half 2000 strength has played major role where subdued inflation supported exceptionally buoyant consumer demand this is also based on significant wealth effect it related stocks buoyancy prompted cautious strategy federal reserve bank put place safeguards for smooth landing overheated following asian crisis 1997 entered an unusual phase while most countries were stagnating grew strongly as result exports fell imports correspondingly rose early providing impetus its trading partners since then trade deficit
