The inflation of Macau

In the first of all half of the nineties when the delivery grew at an one-year average outrank of 6%, flash commit, measured by the consumer harm index, rose hot at an average pasture of 7.8%. In the wake of the Asian financial crisis in October 1997, which propel most Asian peaceable countries into recession, hit hard on Macaus economy. Real gross interior(prenominal) product did not become in 1997 and declined by an estimated 31/2 share in 1998. Inflation declined from well-nigh 5 share in 1996 to 31/2 percent in 1997 and further to about 1/4 percent in 1998. In the statistical enter of Macau SAR, its first price deflationary year was 1998 and this also attach the beginning of a serial of annual deflation. This, together with terse increases in tokenish elicit dictates in the fit two years, take to increases in real interest rambles, which in turn contributed to dormant economic activity. The unemployment rate increased oer the period, unemployment rate elevation piecemeal from 2.7% in the last soak up of 1997 to a summit of 7.1% in the second quarter of 1999, and indicate suggests that median periodic issue fell in the first half of 1998. The lump rate decreased year by year. In 2000, the fanfare rate was -1.61%. Macaus real gross domestic product proceeds sustained its validatory thoroughfare in 2001 while its pretension rate remained in damaging territory of -1.99%.

Changes in GDP deflator and consumer prices were both -2.0%. The negative inflation rate continued and became worsened in 2002 to -2.64%. The Macaus economy became retrieve by 2003 where the inflation rate is -1.48%. Chart 1 shows the movements of GDP ontogeny (both nominal and real) and changes in prices (GDP deflator and composite consumer price index) of Macau until 2001. As indicated by the changes in the four variables, positive... If you exigency to get a intact essay, order it on our website: Ordercustompaper.com

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