Regional performance and short-term prospects

In 1991 per capita GDP in Latin America rose for the first time since 1987. In contrast to the closing years of the 1980s, when vigorous export expansion failed to spark a concomitant improvement in GDP growth, the resumption of growth in 1991 took place in spite of reduced export purchasing power. While the earlier failure to grow was due in part to internal economic disequilibria engendered by the debt crisis, in 1991 import capacity of the region was considerably enhanced as a result of lower debt service payments, on account of lower interest rates, and of substantial net capital inflows. In addition, lower debt payments provided direct relief to budgets and indirectly benefited the economy at large. In many countries, resumed growth was also accompanied by markedly smaller increases in the price level.

Sustainable Development Goals:

Decent Work and Economic Growth

Partnerships for the Goals