The inflation of Macau

In the first half of the 1990s when the delivery grew at an annual average outrank of 6%, flash rate, heedful by the consumer harm index, rose faster at an average rate of 7.8%. In the wake of the Asian financial crisis in October 1997, which displace most Asian Pacific countries into recession, hit severe on Macaus economy. Real gross domestic product did non grow in 1997 and declined by an estimated 31/2 constituent in 1998. Inflation declined from well-nigh 5 share in 1996 to 31/2 percent in 1997 and further to rough 1/4 percent in 1998. In the statistical record of Macau SAR, its first price deflationary social class was 1998 and this similarly marked the beginning of a series of annual deflation. This, in concert with sharp increases in tokenish use up rates in the operate two years, take to increases in real interest rates, which in turn contributed to dormant economic activity. The unemployment rate change magnitude over the period, unemployment rate eleva tion gradually from 2.7% in the last one-fourth of 1997 to a summit of 7.1% in the second quarter of 1999, and evidence suggests that median periodic wages fell in the first half of 1998. The lump rate decreased year by year. In 2000, the pompousness rate was -1.61%. Macaus real gross domestic product growth sustained its validatory path in 2001 patch its inflation rate remained in electronegative territory of -1.99%.

Changes in GDP deflator and consumer prices were both -2.0%. The negative inflation rate continue and became worse in 2002 to -2.64%. The Macaus economy became recovered by 2003 where the inflati on rate is -1.48%. Chart 1 shows the move! ments of GDP growth (both noun phrase 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 want to get a full essay, baffle it on our website: OrderCustomPaper.com

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