The Southeast Asian Economic Crisis
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Code : ECC0004
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Region : Asia |
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Introduction: Mexico has a diversified economy rich in natural and industrial resources. From 1940s to mid-1970s, the Mexican economy enjoyed on an average growth rate of 6%. In the 1970s, the government increased its debt financed spending, which slowed the country's growth rate. Deficits in Mexico's balance of payments made the government devalue the peso by 45% in 1976. In mid-1981, Mexico faced problems like falling oil prices, higher world interest rates, rising inflation and an overvalued peso. The government again devalued the peso in 1982. It also implemented tighter monetary and fiscal policies and privatized some of the state-owned businesses. By 1988, the Mexican economy had recovered and the inflation was under control. In the early 1990s the import growth was more than the export, which increased the trade deficit... |
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