• Euroland will start in 1999 with interest rates around 3.75 per cent, growth of 2.6 per cent and subdued inflation.

• Economies on the periphery of the Euro-zone are diverging sharply from those in the core.

• Japan's Y16 trillion fiscal package will lift output by under 1 per cent in 1998 and 0.5 per cent in 1999.

• A clean-up of the Japanese financial sector is needed to restore consumer confidence and allow a sustained recovery.

• Asian export recovery has been delayed because of the Japanese downturn and difficulties in restoring trade finance.

• US interest rates will remain on hold as buoyant domestic demand is offset by the disinflationary impact of the Asian crisis.