Economic Survey of Latin America and the Caribbean 2009-2010

The Distributive Impact of Public Policies

image of Economic Survey of Latin America and the Caribbean 2009-2010

In 2009, the countries of Latin America and the Caribbean experienced the brunt of the global financial crisis on their levels of activity. However, since the second half of the that year, most countries in the region just begun a vigorous recovery that should strengthen with a regional GDP expansion of approximately 5.2 per cent. The factors behind a more positive performance are both external and internal in nature. Amongst the former can be included the continued dynamism of some key Asian economies, whose sustained demand for products from this region has created important conditions for a recovery in exports, especially in the case of South America.




In 2009, Chile’s economy contracted by 1.5% as a result of the global financial crisis that broke out in the last quarter of 2008. From then through the first few months of 2009, the worsening market outlook in developed countries and especially in the international financial system led to a precipitous drop in both the price and the volume of exports. Expectations for growth, employment and income worsened, and private spending on investment and consumer durables fell sharply. The GDP growth rate thus slowed considerably, resulting in a drop in production and inventories and higher unemployment.


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