text: a deficit of$ 3. 7 billion in 1981, and a surplus of $11 billion in 1982. Non-oil-exporting developinq countries saw their cur­ rent balance deficit widen to$99.0 billion in 1981 from $86.2 billion in 1980, and moreover the 1981 deficit amounted to 31 per cent of current exports aqainst 28 per cent in 1980. However, in 1982 the deficit is expected to drop in absolute terms to$ 97 bill ion.· C. Financial deve!OP!!,l,ents 14. The steep rise in interest rates well above the rate of in­ flation appears to have stopped in the United States by the third quarter of 1982, and a decline has bequn. Meanwhile the US dol­ lar has been steadily appreciatinq aqainst other major curren­ cies, and capital flows have been redirected to a larqe extent towards the United States financial market because of the dif­ ferential between interest rates there and in the other rna j or developed market economies. Taken toqether, hiqher rates of in­ terest and a hiqher excha nqe value for the dollar have been translated into hiqher debt service charqes for these developinq countries which contracted short-term 1 ca. n"s with a hiqh propor­ tion of them in dollars. 15. Despite the current account deficit of the cil-importinq countries, no major liquidity problems arose in 1981; ir!terna­ tional banks drew more on the domestic financial resources of in­ dustrialized countries to canpensate for the shrinkinq OPEC surplus. But hiqher interest rates and their larqe accumulated external lonq-term debt have made it increasinqly difficult fer oil-importinq developinq countries to obtain credit. Their ex­ ternal reserves have qrcwn only marqinally in ncmiral terms (by only $1.6 billion in 1981), and have fallen in real terms. To finance their current account deficit they have had to turr! in- 13 E/ECA/Ct·~. 9/5 creasi nqly to INF facilities, an indication of credit restric­
analysis: The text discusses the economic situation of non-oil-exporting developing countries, specifically their current account deficits, interest rates, and debt service charges. It also mentions the appreciation of the US dollar and its impact on these countries. The text highlights the difficulties these countries face in obtaining credit and financing their current account deficits. Based on this analysis, I hypothesize that the text is most likely related to international trade, economic development, and finance.