Economic Survey of Latin America and the Caribbean 2007-2008

Macroeconomic Policy and Volatility

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The Economic Survey is one of ECLAC's flagship publications, and has been issued since 1948. This new edition covers the region's economic performance in 2007 and the first semester of 2008, and suggests growth estimates for this year.




At 5.1%, GDP growth in 2007 in Chile was higher than the 4.3% recorded the previous year. Against all expectations, however, it came in at the lower end of the projected range. This slowdown, which became apparent towards the middle of the year and has continued into 2008, was caused by the emergence of certain risks in both the internal and the external situation. The effects included, most notably: a rise in inflation, a decline in consumption, a drop in energy production, less activity in the natural resources sector, a real appreciation of the Chilean peso, and a loss of competitiveness of the sectors involved in import substitution. These developments have seriously complicated macroeconomic policy management


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