Economic Survey of Latin America and the Caribbean 1988

image of Economic Survey of Latin America and the Caribbean 1988

In 1988, the economic crisis of Latin America and the Caribbean took a dramatic turn. For the first time since the 1981-1983 recession, the per capita product declined to a level equivalent to that of 1978; inflation almost quadrupled to an unprecedented average of 760%, and real incomes declined in most of the countries.




The Chilean economy evolved very satisfactorily during 1988, favoured by a substantial improvement in the terms of trade and by the advances achieved during the preceding years in restoring the basic macroeconomic equilibria. The gross domestic product grew by more than 7%, the unemployment rate went down for the sixth year in a row, inflation was reduced to less than 13%, and real wages increased by nearly 7%. At the same time, exports grew by more than 30%, the deficit on the current account was reduced to less than a third of the previous level, international reserves equivalent to two months of imports were accumulated, and the external debt diminished.


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