SOUTHERN EUROPE HAS STRONG DOMESTIC DEMAND GROWTH
  Strong growth in domestic demand was a key
  feature of the economies of southern European countries in
  1986, though the growth is seen slowing this year and next, the
  Organisation for Economic Cooperation and Development said.
      In its semi-annual report, the OECD said Portugal's total
  domestic demand growth would decline from 7.6 pct last year to
  five pct in 1987 and 3.75 pct in 1988 as slower wage growth
  restrained private consumption.
      Turkey's economy grew much faster than expected in 1986 and
  domestic demand surged 10.5 pct, but this growth was expected
  to be halved to five pct next year.
      In Spain, buoyant domestic demand, led by fixed investment,
  had been the driving force behind rapid growth in Gross
  Domestic Product. Both fixed investment and private consumption
  were expected to ease during 1988 but would still remain
  strong.
      The OECD forecast that Spanish imports would rise sharply
  next year, reflecting strong demand, entry to the European
  Community and declining competitiveness.
      In Greece, inflation was forecast to turn downwards
  following an increase early this year linked with the
  introduction of Value Added Tax and a surge in food prices due
  to cold weather.
  

