Summary

The international financial crisis that began in Asia in mid-1997 hit the economies of Latin America and the Caribbean more heavily than originally anticipated. Following the region’s excellent performance in 1997, when gross domestic product (GDP) grew by 5.4%, growth in 1998 fell back to 2.3%, owing in part to external shocks of two types, namely, those stemming from the international financial crisis and those originating in a series of natural disasters. Much of this decline occurred in the second half of the year. In the first six months of 1999, nearly all Latin American countries were either reporting a sharp slowdown in economic growth, or else were in full-blown recession. Nonetheless, the signs are that there will be a recovery in the third and fourth quarters of 1999. According to ECLAC projections, regional GDP will shrink slightly for the first time in the 1990s, and will only start to grow again in 2000.

Sustainable Development Goals:

Decent Work and Economic Growth

Industry, Innovation and Infrastructure

Peace, Justice and Strong Institutions