The Soviet economy deteriorated further in the first half of 1990 with increased output of consumer goods failing to keep up with demand, leading to inflation, the Soviet media reported.
People continued to pour money into savings accounts in the absence of anything to buy, the government said Sunday, noting that deposits had increased by $25.6 billion since January. The total sum in savings banks stands at $566.2 billion, it said.Newspapers said the nation's gross national product fell 1 percent in comparison with the same period last year and that national income - which does not include services - decreased by 2 percent. They also said labor productivity was down by 1.5 percent, and industrial output dipped by 0.7 percent.
"The negative tendencies in the economy have been brought about by the deterioration of management at all levels," the report of the State Statistics Committee said.
In other economic news, printing of money had increased by 9 percent and lost work days resulted in a loss of $1.5 billion in production, it said.