In the early part of the 1980s economic growth was negligible and unemployment and inflation soared. The road to convergence In the face of these persistent problems, in the mid-1980s a fundamental reorientation of economic policies, both macro and micro, was undertaken with the aim of putting the economy on a sustainable path of economic growth.
There were several strands to the reorientation of economic policy that contributed to economic success. In the macroeconomic area, fiscal policy was put on a more stable  BIS Review 25/2004  1  footing. This was achieved through effecting sharp cuts in public spending which had grown to 53 per cent of GDP by 1985.