Economic Survey of Latin America and the Caribbean 1986

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In 1986 the evolution of the Latin American economy was marked by contradictory changes. While the main variables used to measure domestic economic performance showed some improvement, the situation of the external sector worsened considerably. Thus, although the rate of economic growth picked up and unemployment and inflation slackened, the terms of trade worsened, the trade surplus fell and the balance-of-payments deficit increased sharply.




In 1986, despite serious problems Ecuador registered an increase in economic activity for the third consecutive year. The gross domestic product increased once again, and although the inflation rate accelerated slightly, real minimum wages improved. The worst difficulties arose from the slump in the price of petroleum, which heightened the balance-of-payments current account imbalance and created a major fiscal distortion.


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