The recovery of the world economy from the 1974-75 recession slowed down considerably in 1977. Economic growth (as measured by changes in real gross national product) in the industrial countries comprising the membership of the Organization for Economic Cooperation and Development (OECD),1 declined from a 4 percent annual rate in the first half to 31/4 percent in the second half. This brought the growth for the year to about 31/2 percent, compared to the approximately 51/4 percent recorded in 1976. The slowdown in the aggregate rate of growth between 1976 and 1977 was the result of a leveling off of growth in Japan and the United States, and a considerable reduction in the rate of growth in virtually all of Europe.