early 1993 represents the trough of a slump started in 1990 ; Inventory levels were reduced in 1993 ; Exports decreased (–0.4%) but not as much as imports (–3.1%) meaning that external trade contributed positively to GDP growth in 1993. The weak economic climate resulted in significant increase in unemployment and public deficits. Reduced activity levels had a direct impact on public finances: social benefits grew 6.8% in 1993 whereas tax revenues only increased 2.4% despite increases in tax rates and charges throughout the year (the Generalized Social Contribution rate was increased by 1.3 points on 1 July 1993). Sweden United Kingdom Despite several major economies showing quarterly detraction during 1989, the British economy continued to grow until the third quarter of 1990. Economic growth was not re-established until early 1993, with the end of the recession being officially declared on 26 April that year. The Conservative government which had been in power continuously since 1979 managed to achieve re-election in April 1992 after the replacement of long-serving Margaret Thatcher with John Major as prime minister in November 1990 helped fend off a strong challenge from Neil Kinnock and Labour. Asian Pacific Japan Japan had loose monetary policy in the decades preceding, causing the Japanese asset price bubble. The BoJ raised interest rates to cause an Inverted yield curve and reduced M2 money supply increases to tame the property asset bubble. The decade following is known as The Lost Decade. Political ramifications Canada and the United States The Progressive Conservative government of Brian Mulroney in Canada and the successful presidential election campaign of George H. W. Bush in the United States may have been aided by growth in 1988. However, neither leader could hold on to power through the last part of the recession, being challenged by political opponents running on pledges to restore the economy to health. Bush initially enjoyed great popularity after the successful Persian Gulf War, but this soon wore off as the recession worsened; his 1992 re-election bid was particularly hampered by his 1990 decision to renege on his "Read my lips: no new taxes" pledge made during his first campaign in 1988. Meanwhile, Mulroney became deeply unpopular in Canada after two failed constitutional reform attempts (the Meech Lake Accord and Charlottetown Accord) and the 1991 introduction of the Goods and Services Tax (GST). He resigned as prime minister and party leader in 1993, and the